Shriram Transport Finance Okays Rs 1,500 crore Rights Issue, Stock Up
The rights issue share price is at an 18 per cent discount to Monday's closing price of Rs 697.50 on BSE
Shriram Transport Finance shares rose almost 1 per cent on Tuesday after the commercial vehicles financier said in a regulatory filing on Monday that it has fixed a price of Rs 570 a share for its proposed rights issue of Rs 1,500 crore. The shares of Shriram Transport Finance rose to an intra-day high of Rs 703.90 in early trading and at 9:42 am, the shares were just off their highs, at Rs 702.85, up Rs 5 or 0.7 per cent, on the BSE.
"Our promoter and Shriram Financial Ventures (Chennai) Pvt. Ltd, a member of our Promoter Group have undertaken to fully subscribe to their Rights Entitlement and shall not renounce their rights, except to the extent of any renunciation inter-se between our Promoter and other members of the Promoter Group," the filing said.
Investors holding 26 shares as on the record date of 10 July, will be eligible for the rights offering, the company said in its stock exchange filing. The rights entitlement ratio is of three rights equity shares for every 26 equity shares held by eligible shareholders, STFC said further. The full subscription amount is payable on application, it added.
The rights issue share price is available at an 18 per cent discount to the share's closing price of Rs 697.50 on the BSE on Monday.
The Sensex traded 71.02 points - or 0.19 per cent - higher at 36,558.30, while the Nifty was up 6.05 points - or 0.06 per cent - at 10,769.70, at the time.