Shriram Transport Finance Company (STFC) said that it has raised INR 1,998.98 crores through a qualified institutions placement (QIP) of equity shares.

The non-​banking finance company, which is part of the Shriram group, had launched the QIP on 7 June 2021 and is said to have received 6.3x oversubscription.

The QIP, which saw the participation of several foreign institutional investors (FIIs) and domestic institutional investors (DIIs), was priced at INR 1,430 per share, which represents a discount of 0.23% to the regulatorily determined floor price of IR 1,433.32.

Shriram Transport Finance Company said that the book running lead managers (BRLMs) to the issue were ICICI Securities, J.P. Morgan India, Citigroup Global Markets India, Axis Capital, and HSBC Securities and Capital Markets (India).

The company’s board had also approved the preferential issue of INR 500 crores, which is split equally between equity shares and convertible warrants to the promoter – Shriram Capital at the issue price of INR 1,440 per security.

Umesh Revankar – Vice Chairman and Managing Director of Shriram Transport Finance Company said: “We are delighted by the response of and participation by the global and domestic investor community in STFC’s QIP. We believe that the 6.3x oversubscription and successful closure without much discount is a testament to the value of our franchise and its attractive growth prospects in long-term.

“The QIP proceeds will augment the Company’s long-term resources for funding requirements of business activities, financing future growth opportunities and general corporate purposes.”

  Axis Capital, Citigroup Global Markets, HSBC, ICICI, ICICI Securities, J.P. Morgan, Shriram group, Shriram Transport Finance Company, Umesh Revankar