Chennai: Shriram Transport Finance Co Ltd (STFC) is ready to raise Rs 600 crore via preferential allotment of equity shares and optionally convertible warrants.

According to a group of company’s board, 68 lakh equity shares will be allotted to Blue Ridge Limited Partnership and/or its associates, and 40 lakh equity shares to Tiger Global Management LLC and/or its members, both New York-based hedge funds. Around 12 lakh equity shares will be allotted to Kampani Finance Limited, which is a JM Finance group company.

The company will make preferential allocation at a price of Rs. 300 per equity share of Rs. 10 each.

The committee has also given its sanction to issue 80 lakh warrants to Shriram Holdings (Madras). The subscription rate for each warrant will be Rs. 30 with an option to the possessor to subscribe to an equity share for each warrant at an exercise cost of Rs. 300 each warrant.

In the first round, the total investment in the company will be Rs. 384 crore that will go up by 20% if the option is practiced within 18 months by Shriram Holdings (Madras) Private Limited.

Sridhar, Managing Director, Shriram Transport, stated, “This infusion of equity will augment the Tier-1 capital of the company and will help Shriram Transport in its ambitious growth plans for the next 3-5 years.”

Mr. Sridhar said that Blue Ridge would hold 3.22 per cent stake in the company, Tiger Global 1.89 per cent and Kampani 0.57 per cent after the allotment of preferential shares.