INSUBCONTINENT EXCLUSIVE:
Shares of Shriram Transport Finance tanked nearly 4 per cent on Friday before recovering after a top executive clarified that the company
will not be affected by group firm Shriram Ventures (SVL) being referred for insolvency proceedings.
Shriram Transport Finance has no
Earlier in the day, global brokerage house Credit Suisse had said in a report that with the SVL case being filed in the National Company Law
Tribunal, its board would lose control over the assets and operations to the interim resolution professional
However, Shriram Transport Finance MD Umesh Revankar said the amount is unlikely to impact the company
Revankar said Shriram Transport will not have to make any additional provisions under the new accounting standards, Ind AS, as the filing of
case does not invoke corporate guarantee.
By end of trade, shares of Shriram Transport Finance closed 3.28 per cent up on the BSE at Rs
In the first-quarter annual report, Shriram Transport Finance had disclosed guarantees to a group company
In 2015, the truck financier provided guarantees to NCDs issued by SVL.
In its report, CS had raised credit cost estimates and cut growth
expectations, leading to 8-17 per cent cut to their 2019-21E EPS for SHTF
