Mumbai: Commercial vehicles financier Shriram Transport Finance Co Ltd (STFC) on Thursday successfully closed its rights issue with a subscription of 1.61 times on the final day of the offering.
The ₹1500-crore Rights Issue received cumulative bids for 4,22 crore shares against the total issue size of 2.61 crore shares, according to data available with the exchanges.
STFC had set a price of ₹570 per share for the rights offering.
Shares of Shriram Transport closed at ₹683.40, down 5.74%, on the BSE, while the benchmark index, Sensex fell 0.88% to close at 37736.07 points.
Shriram Transport reported a fall of 70% in its standalone net profit to ₹223.38 crore, from ₹746.04 crore for the same period last year. Total income stood at ₹4,173 crore in the March quarter of FY20, up 7% from ₹3,883.38 crore in the same period last year.
Shriram Transport's rights issue is among a bunch of such offerings launched by Indian companies to beef up their balance sheets to deal with the fallout of the economic disruptions caused by the covid-19 pandemic.
Earlier in July, Arvind Fashions Ltd raised Rs400 crore through its rights issue.
Currently, PVR Ltd, Mahindra & Mahindra Financial Services Ltd and Gateway Distriparks Ltd are in the market to raise funds through a rights issue.
Micro lender Satin Creditcare Network Ltd has also announced its plans to raise up to Rs120 crore through a rights offering.