Shriram Transport to launch ₹1,500-crore rights issue on 16 July

Mumbai: Commercial vehicles financier Shriram Transport Finance Co Ltd (STFC) on Tuesday said that it will launch its rights issue on 16 July to raise ₹1,500 crore.

The rights issue will close on 30 July, the lender said in a stock exchange filing.

On Monday, the lender had fixed a price of ₹570 per share for its proposed rights issue.

Investors holding 26 shares as on the record date of 10 July, will be eligible for three rights offering. The full amount of the issue price of ₹570 per rights equity share will be payable on application, it added.

The lender added that its promoter entities will be subscribing to the entire portion of rights shares they are eligible for.

“Our promoter and Shriram Financial Ventures (Chennai) Pvt. Ltd, a member of our Promoter Group have undertaken to fully subscribe to their Rights Entitlement and shall not renounce their rights, except to the extent of any renunciation inter-se between our Promoter and other members of the Promoter Group,” the filing said.

In addition to subscription to their respective rights entitlement, the promoter entities have also reserved the right to subscribe to additional equity shares in the rights issue, including for any rights entitlements renounced in their favour or in favour of any entities controlled by them.