NEW DELHI: In a very strong reaffirmation of its belief in the affordable and mid segment housing, Shriram City Union Finance has invested Rs. 200 crore in its housing finance subsidiary, Shriram Housing Finance Limited (SHFL).
The board of Shriram City Union Finance has also approved an investment of upto Rs. 500 Cr into SHFL over the next two years, 200 of which has been invested now. The current infusion of Rs. 200 Cr will increase SCUF’s holding in SHFL to 81.16% from existing 77.25%.
The funds will be used to provide growth capital to the fast growing HFC and enable it to expand its distribution network and customer base. The networth of Shriram Housing Finance which was at Rs. 576 Cr as of March 31st 2021, goes up to Rs. 776 Cr with this investment.
In the recently declared Financial Results for FY 21, Shriram Housing Finance has reported a robust growth in its AUM of 70% YoY, with the highest ever quarterly and yearly disbursements of Rs. 1005 crore and Rs. 2195 Cr respectively. The company ended FY 21 with PAT of Rs. 62.4 Cr, a strong 34% growth for the year. The ROA stands at a healthy 2.5%.
Ravi Subramanian, Managing Director & CEO, Shriram Housing Finance said, “We are happy to get incremental growth capital of Rs. 200 Cr from our parent. 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 continue doing the same. SHFL has forever stayed loyal to its mission of helping people own their dream home”, he adds.
Y S Chakravarti, Managing Director of SCUF added, “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.”