Shriram Transport Fin expects 12% growth in H2

The company plans to finance medical and industrial equipments finance

Shriram Transport Finance Corporation (STFC), one of the country’s largest asset finance company with AUM of Rs 53,000 crore, expects 12-15 per cent growth in the second half of the current financial year. STFC's subsidiary, which is into infrastructure equipment finance company, is planning to finance medical and industrial equipment finance.

Speaking after the company's annual general meeting here recently, managing director Umesh Revankar said the first two quarters were not too good due to election and bad monsoon.

“July is better than June and much better than the last year. We are hoping the second half will be good for the company and are expecting 12-15 per cent growth in AUM,” he said.

Though from October, the growth will come back, clear visibility will be there only from January 2015, he added. Speaking about fund raising plans, Revankar said the company had three options - bank borrowing, raising money from retail investors through NCDs and securitisation.

The company which has received board's approval to raise Rs 3,000 crore through NCD in four tranches, managed to raise around Rs 2,000 crore in three days this week.

“Fund raising is not a challenge, be it retail and other modes. Now since retail is a costly option, if required we will look at raising money through NCDs. A clear picture will be known in January,” said Revankar.

Speaking about Shriram Equipment Finance Company (SEFC), a subsidiary of STFC, Revankar said the company was planning to look at lending to medical and industrial equipment.

"We are just planning and in discussion stage at the Board," said Revenkar.

"We want to be a prominent and most efficient financial institutes in the space of Infrastructure Equipment Lending while catering to all classes of customers across the geography of the country," said Revenkar, who noted company's book size is around Rs 3,400 crore.