Shriram City plans to raise Rs 1,000 cr

The fund raising plan comes at a time when the company has set a target to grow 25-30% in CAGR

Shriram City Union Finance Ltd, a part of the Rs 60,000 crore Shriram Group, is planning to raise up to Rs 1,000 crore through non-convertible debentures (NCD) and other debt instruments.

The fund raising plan comes at a time when the company has set a target to grow 25-30 per cent in CAGR.

G S Sundararajan, managing director, Shriram City Union Finance Ltd, said the fund raising would happen during the current fiscal and would support the company's disbursements target. He also said SCUF had been the fastest growing company within the group, and in the next 4-5 years it would be the growth engine.

Established in 1986, the company calls itself as a non-corporate finance institution focusing mainly on lending for SMEs. "At present, small enterprise lending constitutes 46 per cent of our loan book, and we want to increase this to 60 per cent," said Sundararajan.

Subhasri Sriram, executive director and CFO of the company said, as on date, the company's disbursements were at Rs 13,315 crore and as at June, assets under management (AUM) at Rs 7,032 crore. Gross NPAs for 150 days was at 1.38 per cent; for 180 days it was 1.01 per cent and for 90 days at 3.5 per cent.