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Shriram Transport Finance gains on amalgamation of promoter firm

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Capital Market Mumbai
Last Updated : Apr 24 2013 | 1:41 PM IST

The company made this announcement during trading hours today, 21 December 2011.

Meanwhile, the BSE Sensex was up 238.49 points, or 1.57% to 15,413.57.

On BSE, 12,000 shares were traded in the counter as against average daily volume of 33,527 shares in the past one quarter.

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The stock hit a high of Rs 479 and a low of Rs 468.35 so far during the day. The stock had hit a 52-week low of Rs 442 on 23 November 2011. The stock had hit a 52-week high of Rs 831.85 on 15 April 2011.

The large-cap stock had underperformed the market over the past one month till 20 December 2011, falling 10.59% compared with Sensex's 7.31% decline. The scrip had also underperformed the market over the past one quarter, declining 28% as against Sensex's 11.25% fall.

The company has an equity capital of Rs 226.22 crore. Face value per share is Rs 10.

Shriram Holdings (Madras) (SHMPL) is a promoter firm of Shriram Transport Finance Company. It held 41.27% stake in Shriram Transport Finance Company as on 30 September 2011. Shriram Transport Finance Company said that based on the valuation report issued by Grant Thornton and Fairness Opinion issued by Kotak Mahindra Capital Company, the board has granted its approval to the share swap ratio of 313:124 i.e. 313 equity shares of Rs 10 each fully paid of the company to be issued for every 124 equity shares of Rs 10 each fully paid up of SHMPL.

Shriram Transport Finance Company said that pursuant to the scheme, SHMPL's existing investment (i.e. 9.33 crore equity shares) in the company would be cancelled, and based on the share swap approved, 5,00,868 equity shares of the company would be issued to the shareholders of SHMPL, which is approximately 0.22% of post issue capital by the company.

Shriram Transport Finance Company's net profit rose 0.2% to Rs 299.41 crore on 11.5% growth in total income to Rs 1491.48 crore in Q2 September 2011 over Q2 September 2010.

Shriram Transport Finance Company is India's largest player in commercial vehicle finance with a niche presence in financing pre-owned trucks and Small Truck Owners (STOs). The company has a network of 488 branches and service centers.

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First Published: Dec 22 2012 | 11:32 PM IST

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