Shriram Finance share price pares morning loss after announcement of fundraise
- Shriram Finance share price recovered losses after announcing a significant SACE External Commercial Borrowing Loan Facility exceeding USD 500 million, marking the largest loan ever obtained by an NBFC in India.
Shriram Finance share price recouped its earlier losses during Thursday's trading session and showed slight gains in the latter half after the Non-Banking Financial Company (NBFC) announced it will utilise the SACE External Commercial Borrowing Loan Facility exceeding USD 500 million.
The company announced in its exchange filing that it has secured a significant External Commercial Borrowing (ECB) SACE Push loan facility. This deal marks the biggest loan facility covered by SACE, an Italian export credit agency governed by Italy's Ministry of Economy & Finance, ever obtained by a NBFC in India.
According to the filing, this facility with a long tenor of 10 years is supported by SACE and emphasizes a robust global collaboration focused on fostering the financing of both new and used Italian vehicles, aligned with Shriram Finance’s Social Finance Framework.
The deal involved contributions from prominent global financial institutions, including HSBC, Deutsche Bank, KfW IPEX-Bank, ING Bank, and J.P. Morgan, which served as Mandated Lead Arrangers and Lenders, amounting to EUR 393 million and USD 100 million, illustrating the high level of confidence international lenders have in Shriram Finance’s creditworthiness.
HSBC functioned as the Sole ECA (Export Credit Agency) Coordinator, while ING Bank took on the role of Social Loan Coordinator for this transaction.
“Shriram Finance’s collaboration with SACE reaffirms its ability to structure innovative funding solutions that align with its long-term business strategy,” said the company in an exchange filing.
Further, the NBFC announced that through this latest deal, Shriram Finance has managed to acquire more than USD 2.50 billion in offshore funding during the current financial year, marking the highest amount achieved by any NBFC in India for structured finance and sustainable funding efforts.
Shriram Finance share price today
Shriram Finance share price today opened at ₹557.95 apiece on the BSE, the stock touched an intraday high of ₹560 and an intraday low of ₹538.05 per share.
Riyank Arora, Technical Analyst, Mehta Equities Ltd said that with the stock breaking out above 540 mark and seeing good setup on charts, we feel that the stock is ready for upside move towards 575-580 odd levels in a spree rally. Stoploss to be kept near 520 levels to manage risk well and volume pick up is expected ahead in the stock.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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