Shriram City to expand in eastern markets

Chennai-headquartered nonbanking finance company Shriram City Union Finance Limited (Shriram City) is planning to expand its operation in the eastern markets in Bihar, West Bengal and Odisha.

Though the company has pan-India presence, penetration in northern and eastern markets is low compared with south.

Currently, Andhra Pradesh and Tamil Nadu top the company's list in terms of business and penetration. "We expanding to around 60 branches over the next 18 months," YS Chakravarti, executive director and chief operating officer, said. Shriram City has six branches in the eastern markets.

It is now focusing more on the small and medium enterprises (SME) segment. Currently, the SME loan disbursement accounts for 29 per cent (collateral without gold), and it aim to increase it to 45 per cent by 2015, said Krithika Doraiswamy, assistant vice-president (resource mobilisation and investor relations), Shriram City.

The company has plans to issue secured nonconvertible debentures (NCDs) of about Rs 250 crore, with an over-allotment option of another Rs 250 crore in September. The issue opens on September 12 and is proposed to be listed on the NSE and BSE.