Shares of Shriram Finance climbed over 8 percent in trade on June 3 after the lender raised a multi-currency social loan worth $425 million (about Rs 3,880 crore) through a syndicated term loan transaction to fund its business growth. At 2:03 pm, shares of Shriram Finance were trading at Rs 2,517.95 apiece, up 7 percent on the NSE. Volumes in the counter also surged as 25 lakh shares changed hands, significantly higher than the one-month daily traded average of 13 lakh shares.
The fundraise comprised $425 million and Euro 40 million through a syndicated term loan transaction, Shriram Finance stated. Initially structured as a $200 million social loan facility with a green-shoe option, this multi-currency deal witnessed significant interest from the syndication market. The final lender group expanded to include 16 lenders from Europe, the US, Asia, and Africa.
As of 2:40 PM the shares were trading 6.78% higher at ₹2,513.55 on NSE
The lender intends to use the funds raised to empower small entrepreneurs and vulnerable groups across India, furthering its aim of providing accessibility of financial services to the unbanked and underbanked sectors. Shriram Finance is one of the country’s largest retail NBFCs with assets under management (AUM) of Rs 2,24,862 crore.
