Shriram Finance secures $100 million loan from Asian Development Bank


NBFC Shriram Finance Ltd said on Friday it had secured a five-year loan worth $100 million from the Asian Development Bank to provide credit to its customers towards purchase of new and used vehicles across India.

Shriram Finance, which currently has about 1.71 trillion rupees of assets under management, said it had also raised $250 million from US Development Finance Corporation and $475 million through a 144A Bond from the international market earlier this year.

The lender is a merged entity of Shriram City Union Finance and Shriram Transport Finance.

The company said proceeds would be used for “vehicle finance for commercial purposes for BS VI compliant vehicles and electric vehicles”, besides providing financial support to women entrepreneurs and under-developed states.

New shares of the merged entity tumbled during their market debut on Thursday.

For the Financial Year 2022–2023, Shriram Finance, the largest retail NBFC in the nation, has announced an interim dividend of 150%, or Rs. 15 per equity share with a face value of Rs. 10 each, fully paid up. As of the 30th of September 2022, Shriram Finance, a pioneer in the NBFC sector with a significant rural footprint, claimed to have more than 6.7 million private and corporate customers in India.

On Friday, the company scrip ended 5.20 per cent higher at 1,379.80 at BSE.

For the quarter ended September or Q2FY23, the company posted a promoter shareholding of 29.37% and a public stake of 70.63%. On a YTD basis, the stock has rallied 3.65% so far in 2022.


Catch all the Corporate news and Updates on Live Mint.
Download The Mint News App to get Daily Market Updates & Live Business News.



Source link