Indian Shadow Lender Shriram May Seek Investor for Housing Unit
Shriram City Union Finance, NBFC backed by Apax Partners, may seek investors to fund growth at its housing finance unit.
(Bloomberg) -- Shriram City Union Finance Ltd., an Indian shadow lender backed by Apax Partners, may seek investors to fund growth at its housing finance unit.
Shriram Housing Finance would need about 5 billion rupees ($68 million) in the next three to four months, said Shriram City Chief Executive Officer Yalamati Srinivasa Chakravarti. A couple of investors have approached Shriram, he said, declining to share names.
“We are still evaluating whether we should fund the entire requirement or raise partly from an external party,” Chakravarti said in a phone interview from Hyderabad on Monday. “What is the way forward is not finalized.”
India is seeing strong demand for home loans after the central bank slashed borrowing costs and as the economy reopens from lockdowns. Some state administrations have also reduced taxes to encourage purchasing, as construction is the largest job-creating sector in India.
Shriram Housing reported its highest ever quarterly disbursement of 5.95 billion rupees last quarter, according to an investor presentation.
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