SHFL gets Rs. 300-cr capital infusion from Shriram City
Hyderabad: Shriram Housing Finance Ltd (SHFL), a Mumbai-based housing finance company, part of Shriram Group, announced that it has received the second round of equity capital infusion of Rs300 crore, from the parent company, Shriram City. With this round, the total equity infusion in FY22 stands at Rs500 crore. The current infusion will increase Shriram City's holding in SHFL to 85.02 per cent.
The affordable housing and mid-market segment are witnessing strong demand in tier-2 and 3 cities, and the capital infusion will be utilised to fund the rising demand for home loans. The Company has ambitious plans to expand its distribution with primary focus on cross sell through the Shriram Group network to Shriram customers in Andhra Pradesh and Telangana. The capital will also be utilised to fund the expansion plans in the targeted regions.The net worth of SHFL which was at Rs 788 crore as of June 30, 2021, has risen to Rs 1,088 crore with this investment.
Ravi Subramanian, MD and CEO, SHFL, said: "Our parent's capital infusion will help us expand our footprint and enhance our growth potential. This is also a reinforcement of the groups' faith in our transformed business model. We would continue to build on our core strengths and maintain our growth trajectory."