Shriram Finance Shares Drop 80% on Some Trading Apps: What’s Behind the Plunge

Shares of Shriram Finance Ltd plunged steeply on Friday, January 10, 2025, opening nearly 80 percent lower than Wednesday's close when many investors opened their eyes with a jolt. The shares, which ended at Rs 2,828.95 at Thursday's close, opened at Rs 569.95 on Friday, as the board had announced it would split equity shares in the ratio of 1:5 in the earlier public announcement.

What this means is that for every single share with a face value of Rs 10, the company split it into five shares, each with a face value of Rs 2. This resulted in the apparent 80% fall in price when trading began, but this was due to trading apps not reflecting the adjusted share price for the stock split. With that change, the stocks of Shriram Finance, which are traded on the Bombay Stock Exchange, moved at Rs 569.95 when this report was published with an increase of 1.32% over previous close.

Record date for Shriram Finance had been marked on January 10, 2025. It is approved by shareholders on December 20, 2024, and it informed about stock split of the company through announcement dated January 1, 2025.

Shriram Finance also raised Rs 510 crore earlier this month by issuing non-convertible debentures. It offered 51,000 NCDs at a price of Rs 1,00,000 each, but these will have to be redeemed on maturity in 2030 with an annual coupon rate of 8.9%.

Shriram Finance is a significant provider of financial services, with loan, insurance, and investment products. It has been created after the consolidation of Shriram Transport Finance Company, Shriram City Union Finance, and Shriram Capital. The market capitalization of the company was close to Rs 1.05 lakh crore after accounting for the adjustment of the stock split.

Looking ahead, analysts such as Kotak Institutional Equities expect Shriram Finance to report a loan growth of 18% year-on-year for the third quarter of fiscal year 2025. They expect the company's core net interest margin (NIM) to be stable and credit costs to be manageable. Axis Securities also expects steady growth in assets under management (AUM) and expects the company's margins to remain steady with a slight negative bias.

#trending #latest #ShriramFinance #StockSplit #EquityShares #NBFC #StockMarket #FinanceNews #IndianStocks #InvestmentNews #NonConvertibleDebentures #MarketUpdates #BusinessNews #breakingnews #trendingnews #DXBIndiaNews #BreakingNewsIndia #IndiaUpdates #GlobalIndiaNews #TrendingInIndia #DXBTrending #IndiaHeadlines #TopStoriesIndia #MiddleEastMeetsIndia #ViralIndiaNews #SouthAsiaNews #AllIndianews #breakingsportsnews #breakingPoliticalnews #breakingFinancenews #breakingregionalnews #Entertainmentnews #Educationnews #technologynews #DXBIndia

Simple yoga poses to help reduce PCOD symptoms and balance hormones... Read More.

RPSC has released the RAS Preliminary Exam 2024 admit cards today, January 30, 2025.... Read More.