Shriram Finance Limited has informed the Exchange about in-principle approval from BSE Limited and the National Stock Exchange of India Limited for issue of 47,11,21,055 Equity Shares of face value of Rs.2/- each for Issue price of Rs. 840.93/- per Equity Share by way of Preferential Issue on a Private Placement Basis.
SHRIRAMFIN · price
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Awaiting price reaction for this filing.
Shriram Finance has received in-principle approval from both BSE and NSE to issue 47,11,21,055 equity shares (about 47.11 crore shares) on a preferential/private placement basis. Each share has a face value of Rs. 2, but the issue price has been set at Rs. 840.93 per share — a very large premium over face value. The total value of the issue works out to roughly Rs. 39,600 crore. Given the scale and the specific share count, this preferential issue is most likely linked to the ongoing amalgamation of Shriram City Union Finance into Shriram Finance, with these shares being allotted to SCUF shareholders under the scheme. The issue price is therefore set by the merger terms, not by current market price.
Existing shareholders will see their stake diluted by roughly 15-20% as new shares are issued, but this is part of the planned SCUF merger consolidation rather than a fresh capital raise. Short-term stock reaction may be muted since the dilution was already priced into the merger announcement; the key thing to watch now is the final allotment timeline.