Societe Generale buys 1.47 lakh Shriram Transport Rights Entitlement shares

Societe Generale, French bank, bought 1,47,407 Rights Entitlement shares of Shriram Transport Finance Co Ltd.

As per bulk deals data available on the National Stock Exchange, these shares were bought by Societe Generale at Rs 102.04 (US$ 1.44) per share.

These shares will permit Societe Generale to invest in the ongoing rights issue of Shriram Transport.

Shriram Transport, commercial vehicles financier, has launched its rights issue on 16 July and will close on 30 July to raise Rs 1,500 crore (US$ 212.80 million).

The company had fixed a price of Rs 570 (US$ 8.08) per share for its proposed rights issue. As on the record date of 10 July, investors holding 26 shares will be qualified for three rights offering. The full amount of the issue price of Rs 570 (US$ 8.08) per rights equity share will be payable on application.

Promoter entities will be subscribing to the entire portion of rights shares they are eligible for and will 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.

For the quarter ended on 31 March 2020, Shriram Transport reported a drop of 70 per cent in its standalone net profit to Rs 223.38 crore (US$ 31.69 million) against Rs 746.04 crore (US$ 108.39 million) for the same period last year. The company’s total income stood at Rs 4,173 crore (US$ 592 million) in Q4 FY20, up 7 per cent from Rs 3,883.38 crore (US$ 550.91 million) in Q4 FY19.

The Shriram Transport Finance stock closed at Rs 695.10 (US$ 9.86), up 2.30 per cent on NSE on July 22, 2020, while the Shriram Transport Rights Entitlement closed at Rs 108.05 (US$ 1.53) up 8.16 per cent.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.