BackShriram Transport jumps 6% after T. Rowe Price hikes stake in company
Ajay Piramal-led Piramal Group owns 20% in Shriram Capital, which in turn holds 26.23% in STFC. Piramal also holds 10% in Shriram City Union Finance Ltd
PremiumMUMBAI: Shares of Shriram Transport Finance Company (STFC) rose 6.4% after US-based global investment management firm T Rowe Price raised its stake in the company to 5.36% from 4.77% earlier.
At 0130pm, Shriram Transport traded at ₹634.60, up 3.1% from its previous close, while the benchmark index was up 0.5% at 34,446.89.
On Friday, T. Rowe Price Associates bought 13.53 lakh equity shares or 0.59% stake in Shriram Transport Finance Company. The disclosure was made on Saturday.
Ajay Piramal-led Piramal Group owns 20% in Shriram Capital, which in turn holds 26.23% in STFC. Piramal also holds 10% in Shriram City Union Finance Ltd. Shriram Capital is an unlisted holding company, while Shriram City Union is a consumer lending business.
Last month, Mint had reported that STFC is looking to raise ₹3,000-4,000 crore via a qualified institutional placement or preferential allotment. It is also planning to raise up to ₹35,000 crore via bond issuances.
The NBFC's consolidated net profit soared 38.2% year-on-year to ₹882.19 crore for the quarter ended 31 Decembe, while net sales rose 7.4% ₹4,286.04 crore.
Shriram Transport Finance, the flagship company of the Shriram group, has significant presence in consumer finance, life insurance, general insurance, stock broking and distribution businesses.
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