The board of Shriram City Union Finance has also approved an investment of up to ₹500 crore into Shriram Housing Finance Ltd over the next two years, of which ₹200 crore has been invested now
BENGALURU: Shriram City Union Finance (SCUF) has invested ₹200 crore in its housing finance subsidiary, Shriram Housing Finance Ltd (SHFL).
The board of SCUF has also approved an investment of up to ₹500 crore into SHFL over the next two years, of which ₹200 crore has been invested now. The current infusion of ₹200 crore will increase SCUF’s holding in SHFL to 81.16% from existing 77.25%.
The company said the funds will be used to provide growth capital to the fast-growing housing financial company and enable it to expand its distribution network and customer base. The net worth of SHFL which was at ₹576 crore as of 31 March 2021, goes up to ₹776 crore with this investment.
“…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. We have always focused on growing our business without compromising on quality and we look forward to continuing doing the same. SHFL has forever stayed loyal to its mission of helping people own their dream home," said Ravi Subramanian, managing director and CEO, Shriram Housing Finance.
SHFL is a housing finance company registered with the National Housing Bank (NHB) and promoted by SCUF. It commenced operations in December 2011.
Y.S. Chakravarti, managing director of SCUF said, “We are delighted to continue our support to SHFL. 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."
SHFL is amongst the fastest growing, profitable affordable housing finance companies with a network of more than 80 branches, assets under management of ₹4,000 crore and a net worth of ₹576 crore as at March 2021. The net worth post infusion stands at ₹776 crore, according to the lender.