Mumbai: Mortgage financier Shriram Housing Finance (SHFL) said on Friday its promoter Shriram City Union Finance would inject $ 500 million into the company. Shriram City Union Finance (SCUF) has already invested 200 million and plans to import the remaining amount over the next two years, SHFL said on Friday.
“The board of directors of Shriram City Union Finance has also approved an investment of up to $ 500 million in SHFL over the next two years, of which $ 200 million has now been invested,” SHFL said in a statement.
The current infusion will increase SCUF’s stake in SHFL to 81.16 percent from the existing 77.25 percent.
SHFL CEO and CEO Ravi Subramanian said the capital infusion will help the company expand its business and support growth plans for the next 12-15 months.
“We had an amazing FY21 and with this capital at our disposal, we expect to ride out the second wave of the pandemic and come out stronger in FY2022,” he said.
With this investment, SHFL’s net worth according to the release increased to 776 million from 576 million on 31 March 2021.
In the budget that ended on March 31, 2021, the profit after tax from the housing finance company increased by 34 percent to 62.4 million.
Its assets under management (AUM) grew by 70% year-on-year, with the highest quarterly and annual payouts of 1 005 million and 2 195 million respectively.
Source: Telangana Today