Shriram City Union Finance (SCUF) has already invested Rs 200 crore and plans to infuse the remaining amount over the next two years, SHFL said on Friday.
“The board of Shriram City Union Finance has also approved an investment of up to Rs 500 crore into SHFL over the next two years, Rs 200 crore of which has been invested now,” SHFL said in a release.
The current infusion will increase SCUF’s holding in SHFL to 81.16 per cent from the existing 77.25 per cent, it said.
SHFL MD-CEO Ravi Subramanian said the capital infusion will help the company expand its business and support growth plans for the next 12-15 months. “We have had a great FY21 and with this capital at our disposal, we expect to ride out the second wave of the pandemic and come out stronger in FY2022,” he said. With this investment, SHFL’s net worth has risen to Rs 776 cr from Rs 576 cr as of March 31, 2021.