Shriram City Union to raise Rs 1000 crore
Shriram City Union Finance is planning to raise Rs 1,000 crore by selling shares to institutional investors.
The non-banking finance company, which provides personal loans, gold loans and automobile financing, said it plans to raise the monies in one or two tranches, including modes like qualified institutional placement, bonds, debentures or foreign currency convertible bonds.
The resources raised from the issue will facilitate and meet the company's capital expenditure needs and to repay loans, among other things, the company, which overtook IndusInd Bank as the third biggest two-wheeler financer, said in an announcement to the stock exchanges.
The company also raised the foreign institutional limit in the company to 74% of the paid up capital. As of March 2013, the company's promoters owned 57.31%, while FII owned 25.2% in the company.
Recently, Crisil Research had raised the fundamental grade of Shriram City Union to 4/5 from 3/5, citing that the company's business performance has outperformed the firm's expectation. It also expects the company's asset under management to grow at compounded annual growth rate of 33% over fiscal 2012-2015, with small business loan and gold loans together contributing almost 80% of it.