Shriram Transport Finance to raise Rs 500 cr via QIP
Company News

Shriram Transport Finance to raise Rs 500 cr via QIP

Shriram Transport Finance Co (STFC) has approved a qualified institutional placement (QIP) offering and a capital infusion from its promoter enterprise Shriram Capital Ltd to raise funds.

The company informed the stock exchanges that Shriram Capital would invest Rs 500 crore in the company through a preferential allotment of equity shares and warrants.

According to a source familiar with the company's fundraising plans, the vehicle financier hopes to raise as much as Rs 2,000 crore through the QIP offering.

As shown in a SEBI formula, the company has set a minimum price of Rs 1,433.32 per QIP. Companies are allowed to offer investors a discount of up to 5% on the floor price under the QIP mechanism.

The issue price for the shares and warrants that Shriram Capital will subscribe to has been set at Rs 1,440 per share. Shriram Finance's stock closed at Rs 1,490.1 per share, up 4.64% on the Bombay stock exchange.

The lender stated in an offer document filed with the stock exchanges that the Net Proceeds will be used to supplement their long-term resources for -- meeting funding requirements of their business activities, financing future growth opportunities, and general corporate purposes, subject to compliance with applicable laws and regulations.

ICICI Securities, JP Morgan, and Axis Capital are among the investment banks advising the company on the QIP offering.

Image Source


Also read: Shriram Housing Finance to get Rs 500 cr capital infusion

Also read: Dubai’s Mark AB Capital to acquire 26% stake of Shriram EPC

Shriram Transport Finance Co (STFC) has approved a qualified institutional placement (QIP) offering and a capital infusion from its promoter enterprise Shriram Capital Ltd to raise funds. The company informed the stock exchanges that Shriram Capital would invest Rs 500 crore in the company through a preferential allotment of equity shares and warrants. According to a source familiar with the company's fundraising plans, the vehicle financier hopes to raise as much as Rs 2,000 crore through the QIP offering. As shown in a SEBI formula, the company has set a minimum price of Rs 1,433.32 per QIP. Companies are allowed to offer investors a discount of up to 5% on the floor price under the QIP mechanism. The issue price for the shares and warrants that Shriram Capital will subscribe to has been set at Rs 1,440 per share. Shriram Finance's stock closed at Rs 1,490.1 per share, up 4.64% on the Bombay stock exchange. The lender stated in an offer document filed with the stock exchanges that the Net Proceeds will be used to supplement their long-term resources for -- meeting funding requirements of their business activities, financing future growth opportunities, and general corporate purposes, subject to compliance with applicable laws and regulations. ICICI Securities, JP Morgan, and Axis Capital are among the investment banks advising the company on the QIP offering. Image Source Also read: Shriram Housing Finance to get Rs 500 cr capital infusion Also read: Dubai’s Mark AB Capital to acquire 26% stake of Shriram EPC

Next Story
Infrastructure Urban

What Industry Wants!

The construction industry is gearing up for Budget 2025 with high expectations. As one of India’s key economic drivers, the sector is eagerly anticipating reforms and policies to address pressing challenges such as high input costs, funding gaps, and sustainability demands. Industry leaders across real estate, infrastructure, construction materials, and logistics have shared their wishlists, urging the government to focus on GST rationalization, increased CAPEX, and green initiatives.This year’s budget presents an opportunity for the government to not only tackle existing bottlenecks but a..

Next Story
Infrastructure Urban

Messe Stuttgart, Startup India Tie-Up to Boost Funding

The logistics market in India is poised for significant growth, with a projected revenue of $357.3 billion by 2030. Despite this huge potential, a recent McKinsey & Company report highlights the decline in logistics funding following the pandemic that remains a significant concern. After receiving unprecedented funding of $25.6 billion in 2021, venture capital investment in logistics startups fell sharply to $2.9 billion in 2023—a nearly 90 per cent decrease, marking the lowest since 2015. This pullback from investors is attributed to several factors, including high interest rates, a glo..

Next Story
Infrastructure Transport

JK Tyre Strengthens Road Safety Commitment

Reinforcing its unwavering commitment to road safety, JK Tyre & Industries, a leader in the tyre manufacturing industry, partnered with the Delhi Traffic Police to organise a comprehensive Road Safety Awareness Week. This initiative, held as part of National Road Safety Month (January 1–31, 2025) spearheaded by the Ministry of Road Transport and Highways (MoRTH), aimed to foster responsible driving habits and reduce road accidents. Under the theme ‘Sadak Suraksha Jeevan Raksha,’ the initiative commenced on January 16, 2025, at the Delhi Police Traffic Training Park, BKS. The program feat..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000