The Hindu Business Line : Shriram City Union Fin to raise Rs 400 cr thru pref allotment

Chennai, April 4 Shriram City Union Finance Ltd (SCUF) has announced that it would raise Rs 400 crore through preferential allotment of equity shares and optionally convertible warrants.

The board of directors of the company met on Friday and approved the proposed allotment of 12.5 lakh equity shares to Bessemer Venture Partners and its affiliates, 7.5 lakh shares to ICICI Venture and its affiliates, 6.625 lakh shares to Chrys Capital and its affiliates, 5.875 lakh equity shares to Asia Bridge and its affiliates, all at a price of Rs.400 per equity share.

warrants

All these companies will also get an equal number of warrants at a subscription price of Rs 40 a warrant. The warrants confer on them an option to subscribe to an equal number of shares at a price of Rs 400 a share. Shriram Retail Holdings Pvt Ltd will also get 35 lakh warrants on the same terms.

Investments

The total investment in the company in the first round would be Rs 157 crore, which would go up by another Rs 243 crore if the option is exercised within 12 months by the investors.

According to Ms Subhasri Sriram, Executive Director, Shriram City Union Finance Ltd, this infusion of equity “will augment the Tier-I capital of the company and will help Shriram City Union Finance in its ambitious growth plans for the next 3 to 5 years.”

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