In order to finance its growth plans, Shriram Transport Finance plans to launch public issue for Rs 1,000 crore worth of debt instruments.
The company reportedly requires Rs 20,000-25,000 crore to meet disbursements every year, the majority of which would be met through debt and our own business.
The company, which forayed into equipment finance business last year, has not performed well in that vertical, because of slowdown in the infrastructure sector.
The firm estimated a growth of about 25 per cent, but achieved only 20 per cent. The firm plans to enter the rental business for vehicles and equipment.
Its assets under management (AUM) stood at about Rs 45,000 crore and the firm expects this to expand about 15 per cent.
The company witnessed positive results from its rural foray last year, when it set up rural centres and it is planning to double their number to 600 this year. Expansion of products and new channels are also on the cards, reports indicate.
The non-banking financial arm of the Rs 60,000-crore Shriram Group primarily focuses on bulk and light commercial vehicles (LCVs). While the new bulk vehicle sales werenÂ’t good, owing to the slowdown in the freight market, demand for used vehicles had picked up and the LCV business did reasonably well.
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