Shriram Transport Finance okays rights issue to promoters for Rs 1,500 crore

The issue has been fixed at Rs 570 per share, including premium of Rs 560 per rights equity share.

Shriram Transport Finance okays rights issue to promoters for Rs 1,500 crore

New Delhi: Shriram Transport Finance Company (STFC) has said that the company's securities issuance committee has given its go-ahead to rights issue of equity shares to the promoters and promoter group to raise up to Rs 1,500 crore.

The company in a regulatory filing said that the Securities Issuance Committee has approved the following terms of the Rights Issue of equity shares of face value of Rs 10 each for an amount not exceeding Rs.1,500 Crores

(a) Issue Price: Rs. 570 per fully paid-up rights equity share (including a premium of Rs. 560 per rights equity share).

(b) Terms of payment of Issue Price: The full amount of the Issue Price being Rs. 570 per rights equity share will be payable on application.

(c) Rights Entitlement Ratio: 3 rights equity shares for every 26 equity shares held by Eligible Shareholders as on the Record Date.

The Securities Issuance Committee fixed Friday, July 10, 2020 as the ‘Record Date’ for the purpose of determining the equity shareholders entitled to receive the Rights Entitlement in the Rights Issue of equity shares of face value of Rs.10 each for an amount not exceeding Rs.1,500 Crores, STFC said.