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Shriram Transport Finance Company Limited

First BFSI rights issue during COVID-19

2020

Deal Highlights

  • STFCL is one of the leading NBFCs in the organized sector in India that cater to First Time Buyers and Small Road Transport Operators for financing pre-owned commercial vehicles
  • STFCL chose to tap the equity capital markets for the first time in a decade and became the first BFSI company to raise funds via a rights issue during the Covid-19 Pandemic
  • The Rights Issue comprised of 2.6 Cr equity shares priced at a discount of 18% to the last closing price (on the day before the date of announcement of terms).
  • The issue witnessed solid response from investors with the issue subscribed ~1.6x
  • STFC shall utilize the net proceeds from the issue to augment the capital base.

 

SBICAP Value Add

  • To support STFCL’s large and important retail shareholder base, SBICAP enabled the deep ASBA-ready branch network of SBI and connected with its huge customer base and numerous retail shareholders through SBICAP Securities.
  • Through SBI network, we procured the second highest number of Applications
  • Successfully completed the transaction during the tough Covid-19 times coupled with new system of issuing and trading of Rights Entitlements in Demat mode

Issue Details

Rights Issue Size INR 14.9 Bn
Issue Type Fast Track Rights Issue
Rights Issue Price INR 570 per Rights Equity Share
Lead Managers SBICAP, ICICI, BNP PARIBAS, CITI, CREDIT SUISSE, HSBC, J.P.MORGAN, AXIS CAP
Discount to Price on last closing before announcement of terms 18%
Record Date Friday, July 10, 2020
Issue Opening Date Thursday, July 16, 2020
Issue Closing Date Thursday, July 30, 2020
Rights Ratio 3 Rights Equity Shares for every 26 Equity Shares held on the Record Date
Issue Subscription 1.6x

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