Shriram Transport gains over 4 pc on RBI circular

NEW DELHI: Shriram Transport Finance Corporation (STFC) gained for the fourth straight day on over-subscription of its NCDs and the Reserve Bank of India (RBI) circular released on Friday granted banks the freedom to invest in securitized assets of NBFC.

"The RBI circular which released on Friday, last week has put uncertainties to rest and definitely a relief to NBFC's like us as well as banks which are looking to buy portfolios to meet priority sector norms", adds R Sridhar, MD, Shriram Transport Finance Corporation in an interview with ET Now.

"Commercial vehicle industry is facing a slowdown on account of higher interest rates and the industry might grow around 10 pc this year", adds Sridhar on increasing interest rate scenario and its affect on commercial vehicle industry growth rate.

The company's management is confident of achieving 15-20 % growth target in FY 12 but will need to wait till the end of 2nd quarter for any revision if any in the growth rate on the back of monsoon and movement in interest rate.

The commercial vehicle finance company announced an early closure of its secured non-convertible debentures (NCD) issue due to oversubscription. Through an advertisement in a national newspaper company announced its NCD issue has been oversubscribed by more than 5 times. The Rs 500 cr NCD issue which had an option for the company to retain an additional Rs 500 cr, the company has decided to retain total subscription of Rs 1000 cr.

The stock has been gaining steadily since Wednesday of last week and has advanced over 14 % since then. Today, at 10:49 AM, the stock has gained 3% to Rs 671. The stock has hit a high of Rs 685.75 and a low of Rs 660 in trade today.