SCUF invests Rs 200 cr in its subsidiary SHFL

Shriram City Union Finance has invested Rs. 200 crore in its housing finance subsidiary, Shriram Housing Finance Limited (SHFL).

The Board of Shriram City Union Finance has also approved an investment of up to Rs. 500 cr into SHFL over the next two years, Rs 200 cr of which has been invested now.

According to a press release, the infusion of Rs. 200 cr will increase SCUF’s holding in SHFL to 81.16 per cent from existing 77.25 pc. The funds will be used to provide growth capital to the fast-growing HFC and enable it to expand its distribution network and customer base, added the release.

Ravi Subramanian, Managing Director & CEO, Shriram Housing Finance said, “We are happy to get incremental growth capital of Rs. 200 cr from our parent. This capital infusion will help us expand our business and support our growth plans for the next 12-15 months.”

YS Chakravarti, Managing Director of SCUF, said, “We are delighted to continue our support to SHFL. It is a dynamic, young and fast-growing organisation and the affordable housing space continues to impress and interest us.”