Shriram Housing Finance Gets Rs 300 Cr Equity Capital from Parent Firm
Affordable segment-focused Shriram Housing Finance has secured an additional Rs 300 crore equity capital from the parent Shriram City Union Finance, taking its total equity capital to about Rs 1,100 crore. The company has set a target of crossing Rs 5,600 crore of assets under management (AUM) target by March, as it had already crossed the Rs 4,000-crore mark in July and the new growth capital will help it expand the balance sheet faster. For the Shriram Group's housing finance company, this is the second round of equity capital infusion; and with this, the total equity infusion in FY22 so far stands at Rs 500 crore and since the launch at Rs 1,088 crore. The capital infusion will enable the mortgage lender to expand its balance sheet faster by growing its loan book. "This capital infusion will increase the holding of Shriram City Union in the company to 85.02 per cent," Ravi Subramanian, Managing Director and Chief Executive of Shriram Housing Finance. The company has ambitious plans to expand its distribution with a primary focus on cross-selling through the Shriram Group network to Shriram customers in Andhra and Telangana. The capital will also be utilised to fund the expansion plans in the targeted regions. Subramanian said that with this round of recapitalisation, the company's net worth has also increased to Rs 1,088 crore with this investment from Rs 788 crore in June 2021. He added that this capital infusion will help the company expand its footprint and enhance growth potential, and this is also a reinforcement of the group's faith in the company's transformed business model. On the growth so far this fiscal, he said loan sales have been robust with an annualised growth of 60 per cent, driven by rising demand for affordable home loans. "We are on track with our expansion plans in Andhra and Telangana and that will help us meet our full-year AUM target of Rs 5,600 crore the fiscals."
Tags : News/Views Shriram Housing Finance Equity Capital Shriram City Union Finance Assets Under Management (AUM) Affordable Home Loans