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Shriram Transport Finance gains after RBI withdraws ban on share purchases by foreign investors

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Capital Market
Last Updated : Oct 23 2015 | 12:13 PM IST

Shriram Transport Finance Company rose 2.28% to Rs 953.60 at 10:50 IST on BSE after the central bank withdrew restrictions on buying of shares by foreign investors after foreign shareholding fell below the revised threshold limit of 74%.

The Reserve Bank of India (RBI) issued notification after market hours on Wednesday, 21 October 2015.

Meanwhile, the BSE Sensex was up 221.35 points, or 0.81%, to 27,509.01.

On BSE, so far 24,774 shares were traded in the counter, compared with an average volume of 23,228 shares in the past one quarter.

The stock hit a high of Rs 974 and a low of Rs 950 so far during the day. The stock hit a record high of Rs 1,286.40 on 4 March 2015. The stock hit a 52-week low of Rs 761.50 on 7 May 2015.

The large-cap company has equity capital of Rs 226.88 crore. Face value per share is Rs 10.

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The RBI has on 21 October 2015 notified that foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) can now invest up to 74% of the paid up capital of Shriram Transport Finance Company under the Portfolio Investment Scheme (PIS) as the restrictions placed on the purchase of shares of the company was withdrawn with immediate effect since the foreign shareholding by FIIs/RFPIs in the company has gone below the revised threshold limit.

The RBI has stated that the company has passed resolutions at its board of directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs. The purchases could be made through primary market and stock exchanges.

Shriram Transport Finance Company's net profit rose 4.8% to Rs 321.11 crore on 16.7% rise in total income to Rs 2353.34 crore in Q1 June 2015 over Q1 June 2014.

Shriram Transport Finance Company is the flagship company of the Shriram group which has significant presence in consumer finance, life insurance, general insurance, stock broking and distribution businesses. Established in 1979, Shriram Transport is today the largest asset financing NBFC (non-banking financial company) in the country and holistic finance provider for the commercial vehicle industry and seeks to partner small truck owners for every possible need related to their assets.

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First Published: Oct 23 2015 | 11:00 AM IST

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