Shares of this Indian giant finance company jumped upon securing USD 100 million long term funding

Shares of this Indian giant finance company jumped upon securing USD 100 million long term funding

Indian Market
by 5paisa Research Team Last Updated: 2023-01-02T18:35:33+05:30

The company is one of the largest asset-financing NBFCs in the country and a holistic finance provider for the commercial vehicle industry.

The previous day’s close of the shares was at Rs 1,379.80. On Monday, the shares opened at Rs 1,379.80 and made the day high at Rs 1,390.00 a piece.
 
The Asian Development Bank (ADB) has granted Shriram Finance (SFL) long-term financing in the amount of $100 million. The external commercial borrowing (ECB) for $100 million is a five-year loan that falls under the company's social finance structure. SFL will be able to offer loans for the purchase of new and used vehicles across India thanks to the money raised from ADB, a regional development bank. Profits from the ADB can be used to finance electric and BS VI-compliant vehicles for commercial usage, finance women entrepreneurs specifically, support underdeveloped regions of the nation, and empower and improve the social and economic standing of disadvantaged populations in India.
 
In addition to the ADB loan, SFL has also been successful in raising $475 million through a 144A Bond from the foreign market and $250 million from the US Development Finance Corporation throughout 2022, further diversifying its funding profile and advancing its goals for financial inclusion.
 
Shriram Transport Finance Company Ltd is a part of the SHRIRAM Group conglomerate which has a significant presence in the financing business. In its commercial vehicle finance operations, STFC primarily focuses on trucks, both new and used. This NBFC accepts deposits and has 1,758 branches, 831 rural centres, and relationships with 500 private lenders.
 
The 52-week high of the stock is Rs 1,509.25 whereas the 52-week low was at Rs 1,002.50. Promoters of the company are holding a 25.24% stake in the company whereas the Institutional and Non-Institutional holdings are 54.29% and 20.49%, respectively.


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