Shares of Shriram Transport Finance Co gained over 6 percent in early trade on Thursday, November 17, after the company fixed the record date for the scheme of arrangement and amalgamation.
The stock opened at ₹1,232 per share, lower than the previous close of ₹1,233.65. However, the stock recovered soon and rallied to touch an intraday high of ₹1,309.80.
It was trading at ₹1,279, up by 3.73 percent, at 12:30 p.m. on the NSE.
The stock touched a 52-week-high of ₹1,663 on November 16, 2021, and a 52-week-low of ₹1,002 on March 8, 2022, indicating that at the current levels, the stock is trading almost 30 percent above its 52-week low and 21 percent below its 52-week high.
The stock has given returns of over 15 percent to its shareholders in the past six months. However, it has shown a decline of 21 percent in the last one year. In the last five years, the company's shares have grown by only 0.76 percent.
In a board meeting held on November 15, Shriram Transport Finance Company fixed 30th November 2022 as the record date "for the purpose of determining the shareholders of Shriram Capital ('SCL') and Shriram City Union Finance ('SCUF') for issuance of equity shares of the Company as per the share exchange ratio provided for in the sanctioned composite scheme of arrangement and amalgamation".
Additionally, November 30 has been set as the record date for determining the holders of Non-Convertible Debentures of SCUF.
This decision was made in response to a common order from the NCLT, Chennai, dated November 14, 2022, that approved the composite scheme of arrangement and amalgamation of the Shriram Group entities.
Established in 1979, the large-cap company currently stands with a market capitalisation of ₹33,372.66 crore. The company is primarily engaged in the business of financing commercial vehicles. The NBFC also provides loans for equipment and other business purposes.
According to a Mintgenie poll, an average of 31 analysts gave a ‘BUY’ call on the stock.
