Shriram City Union Finance (SCUF) will infuse Rs 500 crore in its housing finance subsidiary, Shriram Housing Finance Limited (SHFL). Of that, the parent company has already invested Rs 200 crore and remaining will be infused in the span of two years.
The board of Shriram City Union Finance approved an investment of upto Rs 500 crore into SHFL over the next two years.
The current infusion of Rs 200 crore will increase SCUF’s holding in SHFL to 81.16 per cent from the existing 77.25 per cent. The funds will be utilised to provide growth capital to the fast growing HFC and enable it to expand its distribution network and customer base.
The networth of SHFL which was at Rs 576 crore as of March 31, 2021, goes up to Rs 776 crore with this investment.
As of March 31, 2021, Shriram Housing Finance has reported a robust growth in its AUM of 70 per cent YoY, with the highest ever quarterly and yearly disbursements of Rs 1,005 crore and Rs 2,195 crore respectively. The company ended FY 21 with PAT of Rs 62.4 crore, a strong 34 per cent growth for the year.
Ravi Subramanian, Managing Director & CEO, Shriram Housing Finance said, “This capital infusion will help us expand our business and support our growth plans for the next 12-15 months. We have had a great FY21 and with this capital at our disposal, we expect to ride out the second wave of the pandemic and come out stronger in FY 2022.”
Y S Chakravarti, Managing Director of SCUF added, “It is a dynamic, young and fast growing organisation and the Affordable housing space continues to impress and interest us. SHFL is an integral part of the group growth story and this investment is a testimony to that. The company is now well capitalised and poised for growth.”