Shriram Transport Finance allots 17,36,100 equity shares on conversion of warrants; Stock sheds near 2%

The current market cap of the company is Rs42,666.71cr.

Nov 25, 2021 12:11 IST India Infoline News Service

Shriram Group
Shriram Transport Finance Company Ltd has informed to the exchanges regarding allotment of 17,36,100 Equity Shares of the face value of Rs.10 each pursuant to exercise of option for conversion of 17,36,100 Warrants by Shriram Capital Limited, Promoter of the Company pursuant to the provisions of Chapter V of the Securities and Exchange Board of India. (Issue of Capital and Disclosure Requirements) Regulations, 2018 and Sections 42 and 62 of the Companies Act, 2013, including the rules made thereunder (the "Preferential Allotment").

The Board of Directors of the Company on November 25, 2021 has approved allotment of 17,36,100 Equity Shares of face value of Rs. 10/- each fully paid up issued at a premium of Rs. 1430/- per equity share to Shriram Capital Limited, Promoter of the Company upon exercise of option of conversion of 17,36,100 Warrants by Shriram Capital Limited.

The Issue Price of the Warrant was Rs.1,440/- per warrant of which 25% was paid by Shriram Capital Limited on subscription of 17,36,100 warrants on July 08,2021 and the balance 75% i.e. Rs. 1,080/- per warrant being the Exercise Price was paid by Shriram Capital Limited on November 24,2021 on 17,36,100 warrants.

The issue of these warrants convertible into Equity shares was authorized by shareholders of the Company by passing Special Resolution in the Extra-ordinary General Meeting held on July 07, 2021.

The said Equity Shares will be listed on the BSE Limited and National Stock Exchange of India Limited. The Equity Shares allotted to Shriram Capital Limited, Promoter of the Company shall be locked in for a period as specified in the provisions of Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Pursuant to allotment of the Equity Shares, the paid-up share capital of the Company stands increased from Rs. 268,78,36,130 to Rs. 270,51,97,130.

At around 12:37 PM, Shriram Transport Finance Company was trading at Rs1,559.85 apiece down by Rs27.55 or 1.74% on the BSE.

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