Private equity major exiting out of Shriram Finance

Apax Partners is rumoured to sell its entire stake in Shriram Finance through block deal in secondary market on January 13, 2023. Apax currently holds 4.63% stake in the Company. This is in lieu of the 16.73% that it held in Shriram City Union Finance (SCUF) as on September 30, 2022. Subsequently, SCUF had merged … Read more

Poonawalla Fincorp sells housing unit to TPG at an attractive price

Poonawalla Fincorp (PFL) is selling 100% of it’s housing subsidiary Poonawalla Housing Finance Limited (PHFL) to TPG. Consideration is Rs 3,900 cr PHFL reported financials for FY 22 Revenues of Rs 470 cr Net Worth at Rs 1082 crore Above implies a valuation of 8.3x on trailing revenues and 3.6x on Net Worth. (This is … Read more

Post corporate restructuring, Shriram Finance shares business outlook

Shriram Finance (SFL) is the consolidated NBFC arm of the Shriram group. It is formed through the merger of Shriram Transport Finance (STFC), Shriram City Union Finance (SCUF) and Shriram Capital (SC). The management has shared the following key pointers on the way ahead – In next 3 years, Vehicle loans will reduce from 77% … Read more

Some notable highlights by Shriram Housing Finance’s MD

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 … Read more

Reliance announces demerger and separate listing of financial services segment

Alongside Q2 FY 23 results, Reliance Industries Limited (RIL) has announced demerger and listing of a subsidiary, Reliance Strategic Investments Limited (RSIL) to focus on the financial services segment. RSIL is currently a wholly-owned subsidiary of RIL and is a RBI-registered non-Deposit taking Systemically Important (ND-SI) Non-Banking Financial Company (NBFC). RIL will demerge it’s financial … Read more

Auditor now doubts whether Indostar can continue as a going concern

Indostar has finally submitted it’s quarter and year ended March 31, 2022 results. (It’s pertinent to remind here that currently the Company has been going through a self initiated independent review wrt to the credit process/ operational lapses.) As is typical in such scenarios, everyone wants to play safe and auditor of the Company (Deloitte … Read more

NBFCs see demand rising for used-vehicle financing

Non-banking financial companies (NBFCs) are seeing a rise in demand for used vehicle financing amid Covid. The pandemicdriven preference for owning second and third cars in households, upgrades by two-wheeler owners to preowned cars and lower cost of used vehicles are some primary reasons for the spike in demand for used vehicles. NBFCs offering loans … Read more

India Ratings maintains stable rating outlook for NBFCs in FY23

India Ratings and Research on Friday maintained a neutral sector outlook and a stable rating outlook for non-banking finance companies (NBFCs) in FY23. It believes that FY23, in absence of any negative event, would see normalization of business activities, after facing challenges in the past few years following the default by Infrastructure Leasing and Financial … Read more