Shriram Finance, a leading Non-Banking Financial Company (NBFC), plans to raise $1 billion (approximately Rs 8,300 crore) from overseas markets over the next six months to support its business expansion. The company’s Managing Director and Chief Executive Officer, Y S Chakravarti, revealed that the fundraising would be divided into two phases, with $300 million expected to be secured by October 2024 and the remaining $500-700 million in the latter half of the fiscal year.
The capital raise will involve loans from international development financial institutions, including the Asian Development Bank, KfW, and the United States Development Finance Corporation (DFC). However, Chakravarti noted that the timing of the raise will depend on prevailing market conditions.
Shriram Finance draws from various sources to finance its growth, including public deposits, bank finance, and funds from domestic markets. The NBFC expects its loan growth to increase by 15 to 16 per cent during the current financial year, bolstered by diversified funding streams.
As of June 2024, Shriram Finance’s Assets Under Management (AUM) stood at Rs 2.33 trillion, with disbursements amounting to Rs 37,710 crore in the first quarter of FY25, compared to Rs 30,455 crore in the same period last year.
Looking ahead, Shriram Finance also plans to expand its gold loan business, which is currently available at approximately 1,500 branches. The company aims to add 500 more branches over the next two years to meet growing demand.
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