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%.
The infusion is part of Shriram City Union Finance’s plan to invest ₹500 crore in the subsidiary over the next two years.
The funds would be used to provide growth capital to SHFL and enable it expand distribution network and customer base.
The net worth of SHFL, which stood at ₹576 crore as of March 31, would rise to ₹776 crore after the fresh investment.
“This infusion will help us expand our business and support growth plans for 12-15 months,” said Ravi Subramanian, MD & CEO, SHFL. “We expect to ride out the second wave of the pandemic and come out stronger in FY 2022.”
