Shriram Finance Stock Split: 1:5 Ratio, January 10, 2025 Record Date; Your Next Buy?

The flagship firm of the Shriram group, which is well-known in the consumer finance, life insurance, general insurance, stock broking, and distribution industries, is Shriram Finance Limited. With assets under management (AUM) over Rs. 2.43 trillion, Shriram Finance Limited is among the largest non-banking finance companies (NBFC) in India. Its network of 3,149 branches and 77,764 employees allows it to serve 90.26 lakh customers throughout India. Its business is in financing for a variety of products, such as working capital loans, personal loans, tractors and agricultural equipment loans, passenger commercial vehicles, and loans to micro, small, and medium-sized businesses (MSMEs).

Shriram Finance Stock Split

"In furtherance to our earlier intimations dated October 25, 2024, November 20, 2024, December 20, 2024 on the captioned subject and pursuant to approval accorded by the Shareholders of Shriram Finance Limited ("the Company") through Postal Ballot on December 20, 2024 for the Sub-division/Split of face value of Equity Shares of the Company and Regulation 42 of the Listing Regulations, the Company has fixed Friday, January 10, 2025 as the "Record Date" for determining entitlement of Equity Shareholders for the purpose of Sub-division/Split of face value of Equity Shares of the Company," said Shriram Finance in a stock exchange filing on December 23, 2024.

The above said record date has been fixed for determining entitlement of equity shareholders for the purpose of sub-division/ split of face value of each equity share of face value of Rs.10/- each, fully paid-up into 5 equity shares of face value of Rs.2/- each, fully paid-up pari-passu in all respects, according to the company.

Shriram Finance News

By successfully obtaining USD 1.277 billion equivalent in many currencies, including USD, EUR, and AED, through a noteworthy External Commercial Borrowing (ECB) loan transaction, Shriram Finance Limited (SFL) recently achieved a historic milestone on December 18, 2024. With tenors of up to five years, this historic agreement was carried out in collaboration with 12 major banks, including well-known development organisations like the International Finance Corporation. In keeping with SFL's goal of promoting equitable growth, the money raised from this social loan will be used to assist vulnerable groups and empower small business owners throughout India.

SFL obtained USD 468 million earlier this year after obtaining USD 404 million in 2023 from ECB loans.

Mr. Umesh Revankar, Executive Vice Chairman of Shriram Finance Limited stated: "This landmark transaction is a defining moment for Shriram Finance. It not only highlights our ability to navigate the complexities of global financial markets but also reinforces our commitment to creating a meaningful social impact. As the largest syndicated multi-currency transaction by a private sector NBFC, this facility underscores the confidence and trust that international lenders have in our vision, mission, and ability to deliver sustainable growth."

Meanwhile, on December 20, 2024, Shriram Finance Limited reaffirmed its dedication to green financing by merging all of its green finance initiatives under the name Shriram Green Finance, which is focused on financing projects other than electric vehicles. With the goal of creating a strong green finance portfolio by funding EVs, battery charging stations, renewable energy products and solutions, energy-efficient machinery, etc., Shriram Green Finance unifies the green finance industry.

Over the next three to four years, the company aims to reach an Asset Under Management (AUM) of Rs 5,000 crores for this business.

Mr. Umesh Revankar, Executive Vice Chairman, Shriram Finance Limited, said, "The launch of Shriram Green Finance vertical is a milestone in Shriram Finance's journey toward fostering sustainable and inclusive growth. As one of India's leading financial institutions, we are deeply committed to environmental stewardship and our responsibility to empower stakeholders with sustainable financial solutions. This initiative is a testament to aligning our strategies with the global shift toward a greener economy and we are charting a course for long-term value creation that balances profitability with purpose."

Mr. Y. S. Chakravarti, Managing Director and Chief Executive Officer, Shriram Finance Limited, said, "At Shriram Finance, we view sustainability as an essential driver of progress. The Green Finance vertical exemplifies our vision to build a sustainable ecosystem that benefits all stakeholders. This initiative underscores our dedication to enabling customers and partners to thrive in a low-carbon economy."

Shriram Finance Share Price Target

Vinod Jhaveri, Independent Analyst, Pure Technicals said, "Fundamentally Shriram Finance is on a very strong wicket. Recently they sold 84% holding in their housing finance for 3.9K cr. They have floated an exclusive business vertical for green financing as part of consolidating all its green financing initiatives under a newly created entity, Shriram Green Finance. All these initiatives can see the stock price get into good momentum going ahead for a target of 3800/4000."

"Shriram Finance stock price is bearish on the Daily charts with strong resistance at 2961. A Daily close below support of 2853 could lead to a target of 2635 in the near term," commented A R Ramachandran, Independent Research Analyst.

Disclaimer

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