Shriram Transport Finance Company Ltd
Shriram Transport Finance Company Ltd (SRTRANSFIN)

Shriram Transport Finance Company Ltd (SRTRANSFIN)


Key Stats

Day's Price Range
52-Week Price Range
1 Month Return0.42 %
3 Month Return-5.5 %
1 Year Return-11.52 %

Company Financials

  • Quarterly
  • Annual
Value in ₹ crore

Peer Comparsion

Rank 10
Rank 2
Rank 2
Dividend Yield
Rank 8
Rank 9
Price To Book Ratio
Rank 12
Debt To Asset
Rank 5

Company Information

Shriram Transport Finance Company Ltd. a flagship company of Shriram group is Indias largest player in commercial vehicle finance. The company is a leader in organized financing of preowned trucks with strategic presence in 510 year old trucks. It has a panIndia presence with a network of 1799 branches and employs 24670 employees including 19179 business team. It has a vertically integrated business model and offers a number of products which include: Preowned 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 longterm 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 200304 the company increased the windmills capacity from 4450 kwh to 8650 kwh for producing electricity. During the year 200506 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 200607 the company made a tie up with UTI Bank for issue of cobranded 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 200708 due to economic conditions and other business exigencies the company retained the business with them and disposed off their entire shareholding in their whollyowned subsidiary company.During the year 200708 the company opened their own branches across 72 locations. They also extended their operations to financing of passenger commercial vehicles secondhand tractors and construction equipment during the year. During the year 200809 the company opened 49 branches across India. They also strengthened their core knowledge verticals relating to product Territory and Customer. During the year 200910 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 preowned trucks at a fair value. In 2013 Shriram Transport Finance Companys assets under management crossed Rs 50000 crore.In 201516 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 longterm 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 201617 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 Indias leading used vehicle platform. CarTrade Indias leading online automotive business will acquire majority stake in Shriram Automall India Limited SAMIL Indias No.1 physical auction platform for preowned 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 ManagementAUM had increased from Rs. 96252.98 crore to Rs. 104482.28 crore. During 201819 the Company securitised its assets worth Rs. 15123.05croreaccounting for 14.47 of the total assets under management as on 31 March 2019 as against Rs. 12467.16 crore during 201718. During the year 201819 the Company through Shelf Prospectus dated 22 June 2018 offered 50000000 Secured Redeemable NonConvertible 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 201920 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 201819.During the year 201920 the Company through Shelf Prospectus dated 09 July 2019 offered 100000000 Secured Redeemable NonConvertible Debentures NCDs of face value of Rs. 1000 each to the Public for an amount aggregating up to Rs.10000 crore.On 24 April 2019 the Company issued 5.950 Senior Secured Notes due 2022 aggregating to USD 500 Million to the Qualified Institutional Buyers QIBs under the Rule 144A and to the eligible investors outside United States under Regulation S of the U.S. Securities Act 1933. Further on 17 July 2019 the Company issued Senior Secured Notes aggregating to USD 250 Million to the eligible investors outside United States under Regulation S of the U.S. Securities Act 1933. These notes were issued under the USD 2 Billion Global Medium Term Note Programme GMTN Programme.The proceeds of Senior Secured Notes have been utilized for onward lending and other activities as permitted by the ECB Directions.The Company has been awarded by BSE Limited as Outstanding Performer on BSEBOND Platform under the Issuer category. As on 31 March 2020 the company had a distribution network of 1758 network branches across the country.On 06 August 2020 the Company allotted fully paidup 26178777 Equity Shares of face value of Rs. 10/ each to the eligible equity shareholders at an issue price of Rs. 570/ per Equity Share including premium of Rs. 560/ per Equity Share in the Rights Issue which opened on 16 July 2020 and closed on 30 July 2020. The entire proceeds of the Rights Issue have been utilised as per the objects stated in the offer document for the Rights issue. The fresh allotment of equity shares through Rights Issue as stated above has resulted in an increase of equity share capital by Rs. 26.18 crore and securities premium reserve by Rs. 1446.84 crores net of share issue expenses of Rs. 19.17 crore.On 31 January 2021 the Company issued and allotted USD 500000000 4.40 Senior Secured Notes due 2024 in offshore market Social Bonds for sum of USD 499950000 equivalent to Rs. 3669.00 crore under USD 3 Billion GMTN Programme. The said Social Bonds were listed on Singapore Stock Exchange SGXST on 14 January 2021.
OrganisationShriram Transport Finance Company Ltd

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