Shriram City picks banks for up to Rs 1,000 cr share sale

Bank of America Merrill Lynch, JM Financial Ltd and Kotak Mahindra Capital to help launch share sale

Shriram City Union Finance has hired four bankers including Bank of America Merrill Lynch for a share sale to raise up to Rs 1,000 crore, three sources with direct knowledge of the matter said.

The non-banking finance company, which provides personal loans and automobile financing, has also picked local investment banks JM Financial Ltd and Kotak Mahindra Capital for the deal, sources said.

All the sources declined to be named as they were not authorised to speak to the media. Shriram City, headquartered in Chennai, did not respond to a request for comment.

Shriram City plans to launch the share sale to institutional investors in the quarter beginning June, subject to market conditions, and the proceeds will be used to boost the balance sheet of the lender, two of the sources told Reuters.

The company had, in January, taken an approval for its board for raising funds through issue of shares.