Mortgage financier, Shriram Housing Finance Limited (SHFL) has received ₹200 crore from its parent company, Shriram City Union Finance (SCUF)
The board of Shriram City Union Finance has also approved an investment of up to ₹500 crore into SHFL over the next two years, including the recent ₹200 crore infusion.
Share Holding Pattern
The current infusion will increase Shriram City Union Finance (SCUF’s) holding in Shriram Housing Finance Limited (SHFL) to 81.16% from existing 77.25%.
Proceeds
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.
Performance of SHF
In the fiscal ended March 31, 2021, the housing finance company’s profit after tax grew by 34 per cent to Rs 62.4 crore.
Its assets under management (AUM) grew 70 per cent year-on-year, with the highest ever quarterly and yearly disbursements of Rs 1,005 crore and Rs 2,195 crore, respectively.
Comment from SHF
Ravi Subramanian– Managing Director & CEO, “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.”
Comment from SCUF
Y S Chakravarti– Managing Director, “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.”
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