Shriram Housing Finance (SHF), the housing finance subsidiary of Shriram Finance (SFL) is in the process of raising $100 mn growth capital.
- It targets to conclude the fund raise by end June 2023
- Market is speculating Baring to be close to finalise a deal. MD has informed that multiple people are in the fray.
- SHF had AUM of Rs 7,200 crore at the end of December 2022 and it had earned net profits of Rs 101 crore during 1st 9 months of FY 23.
SHF, with a focus on the affordable housing segment, had started operations in November 2010. It grew from an AUM of Rs 1,000 cr end September 2015 to Rs 7,200 cr end December 2023.
About 35-40% of Shriram Housing’s business comes from the southern states – Karnataka, Tamil Nadu, Andhra Pradesh and Telangana. It also has a presence in Gujarat. With a network of 94 branches, it has an average loan size of Rs 16.6 lakh.
Last year, the Company had received a total equity infusion of Rs 500 crore from the parent. Currently, SFL holds 85% of SHF while the rest is with Valiant Mauritius (P) Ltd.
Given the pedigree of the group and increasing investors’ interest in the housing finance market, a good preferential deal into SHF seems to be a given.
Speculations are Rs 1,000 cr for 15% stake dilution.
Multiple investors are claimed to be interested in the deal and Company is expected to finalise the deal by March end.