Gold Silver Reports (GSR) – Shares of Shriram Transport Finance Stock slip as much as 19.2% the biggest singleday drop since October 2016, after the commercialVehicle financier disclosed an “off-balance sheet” exposure to an unlisted group company.
The company provided a corporate guarantee of Rs 870 crore on non-convertible debentures sold by SVL Ltd. The debt-instruments, issued in June 2015, will be due for repayment on June 28, 2019. Shriram Transport Finance’s previous years’ annual reports didn’t include a disclosure about the guarantee, according to a Jefferies Report.
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Shriram Transport Finance Stock is confident that SVL would be able to repay the loan. The non-bank lender is in touch with the SVL management to ensure that the issue gets resolved, Umesh Revankar, managing director and chief executive officer at Shriram Transport Finance. – Neal Bhai Reports (NBR)
