Mortgage financier Shriram Housing Finance (SHFL) Friday said its promoter Shriram City Union Finance will infuse Rs 500 crore in the company.
Shriram City Union Finance (SCUF) has already invested Rs 200 crore and plans to infuse the remaining amount over the next two years, SHFL said on Friday.
The board of Shriram City Union Finance has also approved an investment of up to Rs 500 crore into SHFL over the next two years, Rs 200 crore of which has been invested now, SHFL said in a release.
The current infusion will increase SCUF's holding in SHFL to 81.16 per cent from the existing 77.25 per cent, it said.
SHFL Managing Director 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 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 FY2022, he said.
With this investment, SHFL's net worth has increased to Rs 776 crore from Rs 576 crore as of March 31, 2021, according to the release.
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.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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