Shriram Transport Finance Company Limited
First BFSI rights issue during COVID-19
- 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
|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|