According to IFC, the proposed project envisages a rupee denominated investment into securitized assets of Shriram Transport Finance Company Limited (STFC) through Pass Through Certificates (PTCs) of up to USD 300 million equivalent (of which up to USD150 million will be through IFC’s own account and remaining through mobilization). The proposed project supports vehicle financing for micro, small and medium enterprises (MSME), particularly the micro segment, with a focus on the low-income states (LIS) and rural regions of India. The Covid-19 pandemic has aggravated the already weak economic environment for this segment since they are less resilient to exogenous shocks. Through this project, IFC will provide liquidity to the extremely important MSME segment through NBFCs, and enable resilient business recovery.
STFC is one of the largest asset-financing NBFCs in India with assets under management (AUM) of USD 16.5 billion (INR 1.35 trillion) as on 30 September 2022, with a very strong distribution network that caters to over 2.19 million customers through 1,854 branch offices and 758 rural centres across India. STFC primarily lends to MSME clients in the transportation sector that are economically weak, have limited credit history and therefore are unable to raise funds from commercial banks.
STFC is listed on the Bombay Stock Exchange and National Stock Exchange and has a market capitalization of USD 4.0 billion as of 01 November 2022. As of 30 September 2022, 29.37 percent of STFC’s shares were held by the promoter & promoter group, 50.73 percent were held by foreign portfolio investors and foreign institutional investors, 14.19 percent were held by FIs (including insurance companies, banks and mutual funds), 5.35 percent were held by public shareholders, and 0.37 percent were held by others.
STFC is headquartered in Mumbai, Maharashtra and has 1,854 branches across India.
|Private Actor 1||Private Actor 1 Role||Private Actor 1 Sector||Relation||Private Actor 2||Private Actor 2 Role||Private Actor 2 Sector|
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Shriram Transport Finance Company Limited
AVP – Corporate Finance and Treasury
Fax: +91 22 40959596
G Block, BKC, Bandra East, Mumbai 400051, Maharashtra, India
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