Shriram Transport Finance is doing pretty well today; the most trending company in news and social media currently. The stock price rose over 4.2% to Rs.1124.85; it has come off this intra day high but continues to remain over 2% up at Rs.1100 levels currently.
The company can heave a sigh of relief as it has successfully avoided a situation of providing corporate guarantee on the Rs.650 crore worth of non-convertible debentures to Shriram Ventures.
The company stated that with regard to the corporate guarantee given on June 30, 2015 in connection with Non-Convertible Debentures (NCDs) of face value aggregating to Rs. 650 crore issued by the SVL Limited, the said corporate guarantee has been terminated with immediate effect. Consequently, the contingent liability of the company with respect to redemption/ maturity of the said NCDs stands terminated.
This means the promoter group has taken over the liability and the investors of Shriram Transport have no liabilities.