Shriram Housing finance (SHF) is a 85% subsidiary of Shriram City Union Finance (SCUF).
SHF’s MD & CEO, Ravi Subramanian has informed the following –
- They are looking to grow both organically and inorganically
- Organically, the Company clocked a 54% year-on-year loan asset growth to Rs 6,546 crore at the end of September 2022 and is on track to achieve the Rs 10,000-crore mark by September 2023, ahead of its earlier target of March 2024
- Inorganically, they are in discussions to acquire an affordable mortgage lender with a book size of Rs 2,000-3000 crore. However, will not overpay and will do the transaction only at reasonable valuations. Else will let it go.
- Previously in 2020 also, the company was close to acquiring Fullerton India Home Finance before Sumitomo Mitsui Financials eventually bought it.
- The Company is also planning a Rs 1,000 crore capital raise to fund it’s business growth. This is likely to be in the first quarter of the next fiscal and may come from a new investor. Last year, SCUF had infused Rs 500 crore into the Company.
SHF surely seems to be building the business brick by brick conservatively, which is typical of the group.