Managing director Ravi Subramanian said talks are on.
“There is only one active possibility that we are pursuing, but there again, valuations are a constraint. I will not pay casually to grow,” he told ET in an exclusive chat.
The target company is likely to be in the Rs 2,000-3,000 crore league. “Discussions are still on. But we have to bring them on the table at the end of the day… If it works, fine. If it doesn’t, we will be building ourselves up,” Subramanian Told.
The lender, in parallel, is planning a Rs 1,000 crore Capital Raise for funding Business growth. This is likely to happen in the first quarter of the next financial year. Shriram City Union Finance, which has 85 per cent stake in the housing unit, had infused Rs 500 crore last year.
mortgage The lender saw 54% year-over-year growth loan Assets growth stood at Rs 6,546 crore at the end of September and is on track to achieve the target of Rs 10,000 crore by September 2023, much ahead of its earlier target of March 2024, according to the MD.
“So we are not prepared to bend over backwards and make an offer at any valuation,” he added.
It can also leverage the large network of Shriram Group to grow the business.
“So there are two independent channels (organic and inorganic) on which we are working at full speed,” Subramanian said.
Around 35-40% of its business comes from the southern states-Karnataka, Tamil Nadu, Andhra Pradesh and Telangana. Gujarat is another state where it is very strong.
On the proposed capital raising, the official said the company may look for a new investor.
“Last time we raised money from our existing investors, but this time, we will most likely go out and explore,” he said.
According to people familiar with the matter, the company was close to acquiring Fullerton India Home Finance in 2020 before Sumitomo Mitsui Financial eventually bought it.