India: Shriram City Union Finance infuses $26.6m in housing finance subsidiary
Jaipur, India. Photo by Annie Spratt on Unsplash
May 14, 2021
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.
Shriram City Union Finance has invested ₹200 crore in its housing finance subsidiary Shriram Housing Finance Ltd. (SHFL) taking its holding in the mortgage lender to 81.16% from the existing 77.25%. T
Broker s call: Shriram City Union (Outperformer)
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CMP: ₹1,626.45
Shriram City Union Finance (SCUF), the retail finance arm of the Shriram Group, offers diversified loan products ranging from low-risk (loan against gold) to high-risk segments (small business loans and two-wheeler financing).
Strong group parentage (three decades expertise in the finance services space) is among the key positives. The company benefits from Shriram Chits’ branch infrastructure and existing customers, deriving more than 85 per cent of its business from Shriram Chits’ network. Shriram City operates through a wide distribution network of nearly 930 branches 600 of them are owned by Shriram City and the rest are shared with group companies.
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