Mumbai, Maharashtra, The duly authorized Committee of the Board of Directors of Shriram Transport Finance Company Limited (STFC) informed the stock exchanges that at its meeting held on January 28, 2010, it has allotted 116.58 lacs equity shares of the face value of Rs. 10 each to Qualified Institutional Buyers (QIB) for an aggregate sum of Rs. 583.86 crores resulting in a dilution of around 5.20 %.

The placement was successfully executed with strong investor interest amongst domestic as well as international investors, against the backdrop of volatile equity market conditions. The placement of shares was effected at Rs. 500.80 per share representing a tight discount of 2.91% to the last close of Rs. 515.80 and 0.41% to the closing price on launch, which was Rs 502.85.Final allocations were made to 45 marquee global as well as domestic funds and insurers, which included 22 existing investors and the rest, new investors. This placement will facilitate the diversification of STFC institutional shareholder base while improving liquidity in the shares.

Mr. Arun Duggal, Chairman, said "This is a significant milestone for STFC and bears testimony to the trust reposed in the long term outlook and performance of the Company."Mr. R Sridhar, Managing Director, said "The net proceeds from the offering will be primarily utilized for accelerating the expansion of our core commercial vehicle financing business as also fresh investments in our proposed equipment financing and vehicle trading ventures, which are expected to drive our diversification into the wider infrastructure domain and fee growth among other purposes."

Citigroup Global Markets India Private Limited, DSP Merrill Lynch Limited and IDFC-SSKI Limited acted as the Joint Global Coordinators and Book Running Lead Managers for the placement.

Notes to Editor

About Shriram Transport Finance Company Limited.

Shriram Transport Finance Company Limited is the flagship company of the Shriram group which has significant presence in Consumer Finance, Life Insurance, General Insurance, Stock Broking and Distribution businesses. Incorporated in 1979, Shriram Transport is today one of the largest asset financing NBFC in the country and holistic finance provider for the commercial vehicle industry and seeks to partner small truck owners for every possible need related to their assets. Based at Mumbai, It has PAN India presence with 482 branch offices.