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Shriram Finance Ltd.
NSE: SHRIRAMFIN ISIN Code: INE721A01013
BSE 00:00 | 27 Jan 1240.75 -12.55
NSE 00:00 | 27 Jan 1241.05 -13.15
OPEN 1251.05
PREVIOUS CLOSE 1253.30
52-Week low 1002.50
Mkt Cap.(Rs cr) 46,457
Buy Price 1241.05
CLOSE 1253.30
Mkt Cap.(Rs cr) 46457.40
Shriram Finance Ltd. (SRTRANSFIN) - Company History
Shriram Transport Finance Company Ltd (STFC) is a flagship company of Shriram Group a diversified group with interests in financial services viz. Commercial vehicle finance Consumer Finance life and general insurance stock broking chit funds and distributionof financial products such as life and general insurance products and units of mutual funds. The company is a leader in organized financing of pre-owned trucks with strategic presence in 5-10 year old trucks. It has a pan-India presence with a network of 1854 branches and employs 25456 employees including 19475 business team. It has a vertically integrated business model and offers a number of products which include: Pre-owned CV financing New CV financing and other loans like accidental repair loans tyre loans and working capital finance etc.Shriram Transport Finance Company Ltd was incorporated on June 30 1978 as a public limited company. The company was formed with a view to provide hire purchase and lease finance for the medium and heavy commercial vehicles. In the year 1993 the company launched lease portfolio management scheme and managed more than 100 crore of business through this scheme.In March 1995 the company came out with a rights issue of 64.95 lakh equity shares aggregating Rs 6.49 crore. The issue was to augment long-term resources and working capital and to enhance the leverage ability of the company. In the span of 20 years the company had fortified their presence in the market on account of their focused business segment a wide geographical coverage an effective credit monitoring and appraisal system which has resulted in high growth in business and profitability.During the year 2003-04 the company increased the windmills capacity from 4450 kwh to 8650 kwh for producing electricity. During the year 2005-06 the undertaking of Shriram Investments Ltd and Shriram Overseas Finance Ltd was amalgamated with the company with effect from the appointed date April 1 2005. Also they increased the windmills capacity from 8650 kwh to 23180 kwh.During the year 2006-07 the company made a tie up with UTI Bank for issue of co-branded credit cards with several safety features on the VISA platform exclusively to the truck operators. Also they entered into a shareholders' agreement with Ashok Leyland Ltd and their associates for purchase of 40% stake in Ashley Transport Services Ltd.In February 8 2007 the company incorporated a 100% subsidiary namely Shriram Powergen Ltd to deal with the windmill and the biomass projects of the company. During the year 2007-08 due to economic conditions and other business exigencies the company retained the business with them and disposed off their entire shareholding in their wholly-owned subsidiary company.During the year 2007-08 the company opened their own branches across 72 locations. They also extended their operations to financing of passenger commercial vehicles second-hand tractors and construction equipment during the year. During the year 2008-09 the company opened 49 branches across India. They also strengthened their core knowledge verticals relating to product Territory and Customer. During the year 2009-10 the company purchased hypothecated loan outstanding of CVs and construction equipment of GE Capital Services India and GE Capital Financial Services aggregating to approximately Rs 1100 crore. They introduced touch screen kiosks (one Stop) as a replacement for their successful campaign - 'truck Bazaars'.In June 22 2009 the company acquired the entire paid up capital of Shriram Equipment Finance Pvt Ltd and consequently Shriram Equipment Finance Pvt Ltd became a 100% subsidiary of the company. But they sold their entire investment of Rs 5 lakh during the year itself and consequently Shriram Equipment Finance Pvt Ltd ceased to be the subsidiary company.In December 15 2009 the company incorporated a wholly owned subsidiary company namely Shriram Equipment Finance Company Ltd and in February 11 2010 they incorporated Shriram Automall India Ltd as a wholly owned subsidiary. In 2010 Shriram Transport Finance Company successfully raised Rs 584 crore through Qualified Institutional Placement with domestic and international investors. During the year the company initiated financing of construction equipment.In 2011 Shriram Transport Finance Company introduced Shriram Automalls - a dedicated platform for trading of pre-owned trucks at a fair value. In 2013 Shriram Transport Finance Company's assets under management crossed Rs 50000 crore.In 2015-16 global credit rating agency Fitch upgraded long term issuer ratings to `IND AA+' from `IND AA'. Another credit rating agency CRISIL upgraded its rating on long-term debt instruments and bank facilities and fixed deposits of Shriram Transport Finance Company to 'CRISIL AA+/FAAA/Stable' from 'CRISIL AA/FAA+/Positive`. During the year Shriram Equipment Finance Company Ltd (SEFCL) a wholly owned subsidiary of Shriram Transport Finance Company was merged with Shriram Transport Finance Company. In 2016-17 Shriram Transport Finance Company successfully raised Rs 13.5 billion through issuance of `Masala Bonds' - Senior Secured Rupee Denominated Bonds' listed on Singapore Stock Exchange. On 24 January 2018 Shriram Transport Finance Company Limited (STFC) Shriram Automall India Limited (SAMIL) and MXC Solutions India Private Limited (CarTrade) entered into definitive agreements that will result in the combination of the two businesses creating India's leading used vehicle platform. CarTrade India's leading online automotive business will acquire majority stake in Shriram Automall India Limited (SAMIL) India's No.1 physical auction platform for pre-owned vehicles from STFC. SAMIL is a wholly owned subsidiary of STFC. CarTrade gets majority equity stake by paying Rs 156.37 crore to STFC as consideration for acquisition of shares of SAMIL. Further SAMIL will acquire 100% equity in Adroit Inspection Services Pvt. Ltd. from CarTrade by paying Rs 13 crore as consideration.During FY2019 the total Assets Under Management(AUM) had increased from Rs. 96252.98 crore to Rs. 104482.28 crore. During 2018-19 the Company securitised its assets worth Rs. 15123.05crore(accounting for 14.47% of the total assets under management as on 31 March 2019) as against Rs. 12467.16 crore during 2017-18. During the year 2018-19 the Company through Shelf Prospectus dated 22 June 2018 offered 50000000 Secured Redeemable Non-Convertible Debentures (NCDs) of face value of Rs. 1000 each to the Public for an amount aggregating upto Rs. 500000 lacs pursuant to the Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations 2008 as amended. The Company under the Shelf Prospectus and three Tranche Prospectuses issued and allotted 47926294 NCDs aggregating to Rs. 479262.94 lacs. Utilisation of funds raised were as per the objects of the Public Issue of NCDs. The said NCDs are listed on the National Stock Exchange of India Limited and BSE Limited.During the FY2020 the total Assets Under Management had increased to Rs.109749.24 crore from Rs.104482.29 crore. During 2019-20 the Company securitized its assets worth Rs. 16581.13 crore (accounting for 15.11 % of the total assets under management as on 31 March 2020) as against Rs. 15123.06 crore during 2018-19.During the year 2019-20 the Company through Shelf Prospectus dated 09 July 2019 offered 100000000 Secured Redeemable Non-Convertible Debentures (NCDs) of face value of Rs. 1000 each to the Public for an amount aggregating up to Rs.10000 crore.As on 31 March 2020 the company had a distribution network of 1758 network branches across the country.During the Financial Year 2020-21 the Company securitized its assets worth Rs. 13622 crores of the total assets under management.The Board of Directors of the Company in its meeting held on December 13 2021 have approved a Composite Scheme of Arrangement and Amalgamation which inter-alia involved amalgamation of Shriram Capital Limited (after de-merger of a few undertakings from the said Shriram Capital Limited) and Shriram City union Finance Limited (SCuF) with the Company which will be effective upon receipt of approval of shareholders creditors Hon'ble National Company Law Tribunal Reserve Bank of India and other regulatory and statutory approvals as applicable with an appointed date of April 01 2022. During the Financial Year 2021-22 the Company securitized its assets worth Rs. 12880.16 crores of the total assets under management.The outstanding direct assigned portfolio stood at Rs. 1341.83 crores as on March 31 2022.On June 12 2021 the Company allotted 13986000 Equity Shares of face value Rs.10 each to eligible qualified institutional buyers at the issue price of Rs. 1430/- per Equity Share (including a premium of Rs. 1420/- per Equity Share) aggregating to Rs. 19999980000/- under the QIP issue.
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