Shriram Finance declares ₹15 per share dividend, record date fixed


For the Financial Year 2022-2023, Shriram Finance, the nation’s largest retail NBFC, has announced an interim dividend of 150%, or Rs. 15 per share of par value. 10 each, fully paid. As of September 30, 2022, Shriram Finance, a pioneer in the NBFC sector with a large rural footprint, said it has over 6.7 million private and corporate customers in India.

On Saturday, the company said in its presentation to the stock exchange, “we inform you that at the meeting of the Board of Directors held today, that is on December 24, 2022, among other things: 1. 150% fractional dividend has been declared ie Rs.10/- per share of face value of Rs.15 each fully paid for the Financial Year 2022-23 subject to deduction of tax at source, if any, payable. To pay an interim dividend to the members of the Company’s Register of Shareholders on Wednesday, January 4, 2023, the Record Date. The interim dividend will be paid to eligible shareholders on or after Wednesday, January 18, 2023. 2. Higher amounts for the periodic resource mobilization plan (up to January 31, 2023) have been reviewed and approved, including the issuance of securities. Convertible debentures (‘NCDs’)/subordinated debentures, tranches of private placement bonds or any other method of borrowing in the onshore/offshore market for the Company’s business to finance the increased credit demand resulting from the erstwhile Shriram merger. In City Union Finance Limited. 3. Issuance of convertible debentures/subordinated debentures, bonds or any other structured/hybrid debt has been permitted, subject to private placement, for the business purposes of the Company up to Rs.35,000 crore subject to the approval of the shareholders of the Company. 4. To seek shareholder approval including appointment of new independent directors, appointment of new managing director and chief executive officer, re-appointment of vice president and managing director as executive vice president, payment/review of full-time remuneration. Directors of the Company, issue of non-convertible debentures in private placement up to Rs.35,000 crores, creation of debt related security by the Board up to Rs.2,37,500 crores for the business of the Company etc. “

India’s largest retail NBFC, Shriram Finance Limited (Shriram Finance), on Friday, December 23, reported that its AUM in the combined states of Telangana and Andhra Pradesh reached INR 33,000 Cr. The company said in a filing with the stock exchange, “This, in turn, has boosted the demand for finance for commercial vehicles, micro, small and medium enterprises (SMEs) and two-wheelers. Shriram Finance caters to the diversified financial needs of 13,50,000 customers through its Through 498 branches and over 10,000 employees across AP & TG states. The company has a large fixed deposit franchise in AP & TG totaling over INR 2930 crore with over 46,000 depositors. The growth strategy of the company will be focused on driving autonomous and SME economy.” With a strong net worth. 37,500 crore and assets under management (AUM). 1,71,000 crore, Shriram Finance is a diversified player serving over 67 lakh customers across India (as of September 22).

Commenting on its growth strategy in Andhra Pradesh (AP) and Telangana (TG), Shriram Finance in an official announcement said, “The company’s top 5 products in the region are commercial vehicle financing, SME, two wheeler, Gold Loans and Personal Loans. -will offer services to the underbanked and underserved and expand its reach into this customer segment.It will be responsible for increasing penetration of the self-employed segment, specifically those without formal proof of income and in need of capital to expand their small businesses.Currently with 498 branches in AP and TG , commercial vehicle loans are offered in 268 branches, and 2W, MSME, gold loans and personal loans are offered in 230 branches.The company plans to expand CV loans in 170 new branches for a total of 438, 2W in 80 new branches for a total of 310, gold loans in 260 new branches for a total of 490 , SMEs 208 branches b a total of 438 in towns and a total of 290 personal loans in 60 new offices. Mar-23 The plan is to roll out all products in all branches by the end of 2023.”

Mr. YS Chakravarti, MD & CEO, Shriram Finance said, “Shriram Finance is an Aam Aadmi lender and our strategy is to focus on the self-employed and MSME segment in 2 states. MSMEs face high cost of credit and often lack timely access to capital. . There is inadequate capital infusion and insufficient data on credit requirements is added. We specialize in understanding this segment and their credit needs.”

Mr. K Srinivas, Jt MD, Shriram Finance speaking on the occasion said, “Shriram Transport & Shriram City 2 companies have come together to form Shriram Finance and we have joined our forces and will look at leveraging each other’s potential next time. 1 year. AP & TG states are among Shriram Finance’s top 5 states and will continue to drive the company’s growth. We will focus on the SME lending segment, which has impressive potential but faces financial challenges to grow, and we want to plug that.”

On Friday, shares of Shriram Finance Ltd closed on the BSE 1,300.90 each, down 3.21% from the previous close 1339.00 The stock saw a total volume of 12,237 shares compared to its 20-day average volume of 27,045 shares. The stock touched a 52-week high 1,509.25 on the day (25/07/2022) and a 52-week low 1,002.50 per day (03/08/2022). In the quarter ended September or Q2FY23, the company had 29.37% promoter stake and 70.63% public stake. On a YTD basis, the stock is up 3.65% so far in 2022.


Meet your inner investor
Do you have nerves of steel or do you get insomnia over your investments? Let’s define your investment vision.

Take the test

Catch business news, market news, breaking news and breaking news updates from Live Mint. Download The Mint News app for daily market updates.

More Less

Leave a Comment