Capital Infusion Strengthens Subsidiary
Shriram Finance Limited has infused an additional ₹300.05 crore into its wholly-owned subsidiary Shriram Overseas, as part of a phased capital infusion approved by the board in May 2025. The funds were deployed by subscribing to 1.90 crore equity shares at a face value of ₹10 each, with a premium of ₹147.69 per share.
The total capital infusion plan for Shriram Overseas allows for up to ₹500 crore, with this tranche representing 100% subscription of the rights issue. According to the company, the primary goal of this investment is to further strengthen the subsidiary’s capital base.
About Shriram Overseas
Shriram Overseas engages in investment activities, including acquiring, subscribing to, underwriting, and disposing of shares, bonds, securities, and debentures of companies both in India and abroad.
The subsidiary reported a turnover of ₹3.26 crore for FY25, slightly down from ₹3.63 crore in FY24, and up from ₹2.14 crore in FY23, reflecting its continued investment operations.
Shriram Finance Q1 Performance
In its June 2025 quarter results, Shriram Finance posted a net profit of ₹2,159.4 crore, marginally below the CNBC-TV18 poll estimate of ₹2,164 crore, but up 6.3% year-on-year from ₹2,031 crore.
- Net Interest Income (NII): ₹5,773 crore (up 10.3% YoY, slightly below the estimated ₹6,002 crore)
- Operating Profit: ₹4,192 crore (below the Street expectation of ₹4,422 crore)
The results highlight steady growth despite slight deviations from market expectations, while the subsidiary capital infusion underscores the company’s strategy to strengthen its overseas investment arm.
Summary
- Capital Infusion: ₹300.05 crore into Shriram Overseas via rights issue.
- Subscription: 1.90 crore shares at ₹10 face value + ₹147.69 premium per share.
- Objective: Strengthen subsidiary’s capital base for continued investment activities.
- Subsidiary Turnover: ₹3.26 crore for FY25 (FY24: ₹3.63 crore).
- Parent Q1 Results: Net profit ₹2,159.4 crore; NII ₹5,773 crore; operating profit ₹4,192 crore.
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