mortgage lending

In order to fund its business growth, the lender is planning a Rs 1,000-crore capital raise parallelly. Shriram City Union Finance, holding 85 per cent in its housing unit, had introduced Rs 500 crore during last year into it

Shriram City Union Finance subsidiary Shriram Housing Finance is looking for a smaller lender in the affordable housing space for the acquisition and merger purposes. Meanwhile the valuation mismatch could create a hurdle to the scheme of things.

Expectedly, the targeted company will be in the league of Rs 2,000 to 3,000 crore, according to the media report.

In order to fund its business growth, the lender is planning a Rs 1,000-crore capital raise parallelly. Also, this may prevail during the first quarter of the next fiscal.

Shriram City Union Finance, holding 85 per cent in its housing unit, had introduced Rs 500 crore during last year into it.

The mortgage lender booked a 54 per cent on loan asset growth on year-on-year basis to Rs 6,546 crore during September end. It is on track to reach the Rs 10,000 crore mark by September 2023, well ahead of its earlier target of March 2024, the media report added.

Possibly, it can also boost the large network of the Shriram group to grow business.

It caters nearly 35 to 40 percent of its business from the southern states including Karnataka, Tamil Nadu, Andhra Pradesh and Telangana. Gujarat falls in the category very strong state.

On the proposed capital raising, the official said the company may explore to rope in a new investor.

The company had nearly acquired Fullerton India Home Finance in 2020 before Sumitomo Mitsui Financials eventually bought it, quoted the media report.