How does Shriram Transport propose to use proceeds of its rights issue?

Shriram Transport is also looking to spruce up its balance sheet with a Rs.2000 crore rights issue. While the company is not sure, it may also follow it up with a QIP placement. The idea is to strengthen the balance sheet in the aftermath of the cash crunch caused by the lockdown. This war chest will help STFL to prepare for contingencies and also to make the best of opportunities arising. STFL borrowers essentially are small road transport operators and temporary truck fleet owners.