SRG Housing Finance lists on the NSE; Focused on achieving Rs. 750 crore AUM by FY25
Looking to expand into newer states such as Karnataka, Tamil Nadu, Telangana & Andhra Pradesh
National, 21st August 2023: SRG Housing Finance Limited (SRGHFL), which primarily caters to the underserved rural and semi-urban populace in western and central India, listed on the National Stock Exchange (NSE). On the eve of entering its 25th year since incorporation, SRG Housing Finance is focused on achieving Assets Under Management (AUM) of Rs. 750 crore by FY25.
Its current AUM as on June 30, 2023 stands at Rs 474.4 crore. SRGHFL is also planning to expand into newer states such as Karnataka, Tamil Nadu Telangana & Andhra Pradesh in addition to Rajasthan (28 branches), Gujarat (15 branches), Madhya Pradesh (17), Maharashtra (corporate office) and Delhi (1 branch).
SRGHFL is focused on borrowers from rural India who are credit hungry with the following characteristics: Economically Weaker Sections (EWS), Low Income Group (LIG), Middle Income Group (MIG); Age group of 21- 45 years; Monthly Net Income of Rs. 15,000; New to Credit Justified Credit Bureau Calls; and, Lack of Income Documentation. SRGHFL’s Go-To-Market strategy comprises Feet on Street, Channel Partners, Strategic Partnerships, Corporate tie-ups and Digital Marketing among others.
Present at the momentous NSE listing function were: Mr. Vinod K. Jain (Promoter & MD), Mrs. Seema Jain (Promoter Director), Mr. Archis Jain (CEO), Mr. Ashok Modi (CFO) and Ms. Divya Kothari (Company Secretary and Compliance Officer) among others.
Mr. Vinod K. Jain, MD, SRG Housing Finance Limited, said, “Our listing on NSE is a significant milestone as we continue to position ourselves as a strong retail affordable housing finance company with rich expertise and experience leading to sustainable growth.
Being the first company in Rajasthan to get registered with National Housing Board (NHB) to focus on small ticket loans, we have showcased steady growth in AUM as well as best-in-class Net Interest Margin (NIMs). We recorded the highest ever disbursement in any quarter in Q1FY24. In FY23, we have raised funds of Rs. 177.40 crore, in which 31% from PSU banks, 8% from private banks, 46% from Financial Institutions (FIs), and 14% from NHB.
The company’s liquidity is strong and Asset Liability Management (ALM) position is also comfortable . We are planning to open more branches in Southern states as well as in existing states. With the expansion of branches, our business per quarter could rise to Rs. 84 crore. And if we take the average of this run rate, we expect disbursement of around Rs. 250 to 300 crore to be done in FY24. SRG Housing is focused on achieving Rs. 750 crore by FY 25 with sustainable business metrics.”
Mr. Archis Jain, CEO, SRG Housing Finance Limited, said, “The addressable target market for the underserved population in the unorganised sector with no income proof and inadequate collaterals is over Rs. 1 lakh crore. Borrowers prefer SRGHFL as the preferred partner to help fulfil their dream in affordable housing due to the quick sanction and disbursement process; prompt response and quick solutions for financial assistance.
We extend simple documentation process with geographically different credit and collateral policy. Such measures have helped in-depth rural penetration and localised approach. SRG SRAJAN is our digital ecosystem tool, which is a combination of web and mobile applications, and encompasses the entire journey from loan origination to loan management to loan collection. We are on track to cross the Rs. 1,000-crore AUM mark in the next 3 to 4 years.”
Established in 1999, SRG Housing is engaged in providing Housing Loans and Loan Against Property (LAP) and are the first company in Rajasthan to get registered with National Housing Bank (NHB). SRG Housing Finance is present across 5 states namely Rajasthan, Madhya Pradesh, Gujarat, Delhi and Maharashtra with 62 branches as on June 30, 2023.
SRG Housing touched AUM of Rs 474.4 crore as on 30 June 2023 with strong jump of Rs. 36 crore QoQ. It had best in class NIMs (11.33% for FY23 and 2.98% for Q1FY24). It is focused on small ticket loans (ATL: less than Rs.6 lakh) and low LTV (less than 40% as of Q1FY24).
The company has launched ESOPs during the quarter for eligible employees. The Book Value per share as on 30 June 2023 was Rs. 105.92 and Loan Spread continued to remain strong at 12 as of Q1FY24. SRG Housing was India’s first company to migrate from BSE SME Platform to the BSE Main Board on 4th February 2015.
