Chennai’s Shriram Housing aims big in this fiscalMarch 30th, 2012 - 1:34 am ICT by IANS
Chennai, March 30 (IANS) Chennai-based Shriram Housing Finance Limited plans to grow its loan book size around Rs.340 crore this fiscal after beefing up its fund base with fresh equity investments from Valiant Mauritius Partners FDI Ltd and parent Shriram City Union Finance Ltd, said a senior official.
Shriram City Thursday announced its decision to dilute 22.75 percent stake in its wholly -owned housing finance subsidiary Rs.14.8 crore equity-based Shriram Housing to private equity Valiant Mauritius.
“The current loan book size of Shriram Housing is Rs.10 crore. We will grow this business manifold with the funds infused by Valiant Mauritius and Shriram City,” Subhasri Sriram, executive director at Shriram City told IANS.
According to her, Valiant Mauritius will invest Rs.170.52 crore and Shriram City Rs.165.44 crore in three tranches over a period of two/three years in Shriram Housing.
The equity holding pattern will remain the same - 22.5 percent with Valiant Mauritius and 77.5 percent with Shriram City - throughout the deal period.
“Immediately, Valiant Mauritius will be investing around Rs.70 crore and Shriram City Rs.50 crore. Borrowings will be three times of the funds that are being infused,” she said.
She said Valiant Mauritius will acquire stakes in Shriram Housing at Rs.35 per Rs.10 face value share while Shriram City will acquire at par value.
Going by the deal, the enterprise valuation of Shriram Housing comes to Rs.750 crore.
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Tags: borrowings, chennai, equity investments, executive director, face value, fdi, finance limited, finance ltd, finance subsidiary, loan book, mauritius, par value, percent stake, private equity, shriram, three times, tranches, union finance, valiant