I-Sec successfully closes Shriram Transport Finance Company's INR 14,921.9 mn Rights Issue

ICICI Securities successfully closes INR 14,921.9 mn Rights Issue of equity shares issued by Shriram Transport Finance Company Limited.

ICICI Securities (I-Sec) has successfully closed the Rights Issue of Shriram Transport Finance Company Limited ('STFC'). STFC is a part of the Shriram group of companies with a track record of over three decades in the commercial vehicle financing industry in India.

Transaction Highlights & I-Sec Achievements

The transaction was a Rights Issue of equity shares to raise an amount aggregating to INR 14,921.9 mn.

I-Sec was the left lead Global Co-ordinator and Lead Manager ("GCLM") and provided end to end execution support to STFC in achieving desired timelines.

I-Sec worked closely with STFC team in formulating a suitable marketing strategy to reach out to institutional and non-institutional investors, despite lockdown in India due to Covid-19 pandemic

Due to its strong domain knowledge, I-Sec was able to generate strong interest amongst shareholders leading to an oversubscription of ~1.64x.

I-Sec managed ~20 top FII/DII shareholders of the company including the likes of FMR, Somerset Capital, ADIA, Valiant and MFS, all of whom constituted ~25% of the Institutional Holding in a 8 bank syndicate.

I-Sec has been a part of 2 capital markets transaction involving STFC and its shareholders in the last 2 years. Apart from acting as the Left Lead BRLM for the current Rights Issue, I-Sec also acted as the sole book runner to Piramal Enterprises Limited to facilitate its ~$325 mn stake sale in STFC in June-19.

I-Sec leveraged the I-Direct Platform to play a leading role in formulating retail marketing strategy and procuring ~ 22 % of total retail applications.

Shares of SHRIRAM TRANSPORT FINANCE CO.LTD. was last trading in BSE at Rs.674.9 as compared to the previous close of Rs. 673.85. The total number of shares traded during the day was 139221 in over 3024 trades.

The stock hit an intraday high of Rs. 682 and intraday low of 666. The net turnover during the day was Rs. 93963963.

Shares of ICICI Securities Ltd was last trading in BSE at Rs.493.75 as compared to the previous close of Rs. 490.9. The total number of shares traded during the day was 21908 in over 1419 trades.

The stock hit an intraday high of Rs. 505.2 and intraday low of 486.45. The net turnover during the day was Rs. 10910702.

Source : Equity Bulls

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