Shriram Finance announces 150% interim dividend, plans to raise Rs 35,000 crore on private placement basis

Shriram Finance has announced an interim dividend of 150 percent, or Rs 15 per share with a face value of Rs 10 each, fully paid up. The dividend was notified for the financial year 2022-23. This declaration was made on Saturday, 24 December, during a meeting held by the Board of Directors of the non-banking financial company (NBFC). Shriram Finance stated in a regulatory filing that the interim dividend payout is going to be made available to the eligible shareholders on or after 18 January 2023. The board reviewed and approved higher amount(s) for the periodical resource mobilisation plan (up to 31 January 2023). This includes the issuance of securities like redeemable nonconvertible debentures (NCDs)/ subordinated debentures and bonds on private placement basis in tranches. The issuance is being done to meet rising credit demand following the merger of Shriram City Union Finance into Shriram Finance. The board has given its approval for the issuance to raise up to Rs 35,000 crore to meet the company’s growing business needs. The NBFC’s board has approved a postal ballot notice to seek shareholders’ approval inter-alia for appointing new independent directors, Chief Executive Officer and new managing director. Approval was also sought for the re-designation of vice chairman and managing director as executive vice chairman. As of 30 September 2022, Shriram Finance claimed to have more than 6.7 million private and corporate customers across India. According to the company, it is India’s largest NBFC, and provides credit solutions for vehicles. The loans it offers are namely two-wheeler loans, car loans, personal/ small business loans, home loans, and gold loans. As of 30 September this year, it had a network of 2,875 plus branches and a workforce of more than 57,382 people. The company has combined Assets Under Management (AUM) amounting to Rs 171,367 crore. The NBFC claims to have a strong rural presence and states that it is a digitally mature financial institution which reflects the banking requirements of Gen Z and millennial customers. According to Shriram Finance’s website, the organisation provides priority financial services to those in the unbanked and underbanked sectors. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.