Shriram Transport Finance Corporation share price rebounded 9 percent after the company’s clarification note on SVL loan soothed investors’ sentiment. The stock had fallen 12 percent in previous session as investors had turned cautious of a guarantee of Rs 870 crore provided by the firm for its unlisted subsidiary.
Shriram Transport Finance Corporation issued clarification note yesterday, saying SVL Limited, its promoters / promoter group, and its associates, have enough resources to honour the payment of this loan whenever due and payable has reassured the same.
The company had given corporate guarantee in connection with issue of non-convertible redeemable debentures (NCD) issued by SVL Limited in June’ 2015. Apart from this corporate guarantee, STFC has not extended any fresh guarantee for SVL Limited. The corporate guarantee is secured by pledge of shares of SVL.
This guarantee was duly approved by the board of directors of STFC and the same was appropriately disclosed in the documents available in public domain on a timely manner, the company said.
The NCDs fall due for maturity after a year from now in June’2019.
“The Promoters of STFC are also addressing the above with SVL Group to get the settlement of the dues on or before the due date, failing which, the Promoters / Promoter Group of our Company will address through alternate mechanisms to settle the dues,” the company said.
The company further said it has always adhered to highest corporate governance norms and best practices and would continue to do so in future to protect all stake holders interest.
The total assets under management (AUM) of the company is more than Rs 95,000 crore and PAT for FY 2017-18 was Rs 1,568.02 crore.
At 09:19 hours IST, the stock price was quoting at Rs 1,182.50, up Rs 37.65, or 3.29 percent on the BSE.
[“Source-moneycontrol”]
