Shriram Transport Finance Company (STFC) on Monday said the company's securities issuance committee has given its go-ahead to rights issue of equity shares to the promoters and promoter group to raise up to Rs 1,500 crore.

The firm's securities issuance committee in its meeting on Monday approved the rights issue of equity shares of a face value of Rs 10 each for an amount not exceeding Rs 1,500 crore, STFC said in a regulatory filing.

The issue has been fixed at Rs 570 per share, including premium of Rs 560 per rights equity share, it said.

The rights entitlement ratio is of three rights equity shares for every 26 equity shares held by eligible shareholders, STFC said further.

The committee has fixed July 10 (Friday) as the record date for the purpose of determining the equity shareholders entitled to receive the rights entitlement in the rights issue of equity shares for an amount not exceeding Rs 1,500 crore, the company said.

"Our promoter and Shriram Financial Ventures (Chennai) Pvt Ltd, a member of our promoter group, have undertaken to fully subscribe to their rights entitlement and shall not renounce their rights, except to the extent of any renunciation inter-se between our promoter and other members of the promoter group," STFC said.

In addition to subscription to their respective rights entitlement, they have also reserved the right to subscribe to additional equity shares in the rights issue, including for any rights entitlements renounced in their favour or in favour of any entities controlled by them, it said further.

Shriram Capital Ltd is the promoter of STFC with a stake of 26.23 per cent as of March 31, 2020. Promoter group Shriram Financial Ventures (Chennai) Pvt Ltd carries a stake of 0.02 per cent.

STFC's shares on Monday closed at Rs 697.50 apiece on the BSE, up 0.24 per cent from the previous close.