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This Microcap stock deals in the business of performing asset management of Shriram Mutual Fund hits a 5 percent upper circuit after Sanlam Emerging and Shriram Credit triggered a 26% open offer from the public for Rs. 270.
Price Action (WA:ACT)
With a market capitalization of Rs.865 Crores, the shares of Shriram Asset Management Co Ltd (BO:SRMA) were up by 5 percent in the day’s trade touching a day’s high of Rs. 694.60 per share. The stock reiterated from the day’s high and was trading at Rs. 665.10 per share which is 0.54 percent higher than the previous closing price of Rs. 661.55 apiece.
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What Happened
The stocks of Shriram Asset Management Company rose after the Sanlam Emerging Markets (Mauritius) and Shriram Credit Company, the promoter has announced an open offer for the acquisition of up to 43,95,499 fully paid equity shares with a face value of Rs. 10 per share from the public shareholders of the company.
On 10th December 2024, the company announced a preferential share of 38.89 lakh worth Rs. 105 crore to Sanlam Emerging Markets. After the allotment, Sanlam would hold around 23 percent stake, triggering an open offer for the promoters. This share issue is subjected to approvals from shareholders, and regulators including CCI, SEBI, Stock Exchange, and Trustee approval. The 26 percent of the expanded voting share capital is priced at Rs. 270 per share.
About the Company
Shriram Asset Management Company Limited is a key player in India’s financial services sector, established in 1994 as part of the Shriram Group. They primarily manage the Shriram Mutual Fund while focusing on various investment strategies across equity, debt, and hybrid funds.
They aim to provide accessible investment solutions to retail investors while leveraging their parent company’s extensive experience in commercial finance and insurance. With over Rs. 876.37 crore in assets under management as of October 2024, SAMC focuses on customer-centric services and aims to deliver consistent returns while maintaining robust compliance with regulatory standards
Products and Services
They offer a range of mutual fund products which includes equity, debt, and hybrid schemes. Key offerings include the Shriram Flexi Cap Fund, Shriram Aggressive Hybrid Fund, and Shriram Liquid Fund. They focus on providing investment solutions tailored to various financial goals, focusing on wealth creation and financial security for retail investors.
Financials & Ratios
Its Revenue from operations grew by 7.2 percent year on year from Rs. 1.79 Crore in Q2FY24 to Rs. 1.92 Crore in Q2FY25, accompanied by a loss of Rs. 2.25 Crore to a loss of Rs. 3.63 Crore.
In terms of Return ratios, it has reported a return on equity (ROE) of -7.10 percent and a return on capital employed (ROCE) of -9.08 percent. It has a net profit of -0.89 percent as of FY24.
Shareholding Pattern
As of September 2024, the shareholding pattern with the promoter’s stake holding a major share of 62.55 percent in Shriram Asset Management Company, and public holdings standing at 37.45 percent.
Written by Santhosh S
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