Special Correspondent

CHENNAI: Shriram City Union Finance Limited (SCUF) has decided to raise Rs. 400 crore through preferential allotment of equity shares and optionally convertible warrants. A decision to this effect was taken at a board meeting held on Friday. The equity shares and warrants would be issued to Bessemer Venture Partners, ICICI Venture, Chrys Capital and Asia Bridge and their affiliates.

The total investment in the company in the first round would be Rs. 157 crore, which would go up by another Rs. 243 crore if the option was exercised within 12 months by the investors, the release said. An extra-ordinary general meeting would be held on May 3 to seek the shareholder’s approval.

“This infusion of equity will augment the Tier-I capital of the company and will help Shriram City Union Finance in its ambitious growth plans for the next three to five years, the company release quoted Subhasri Sriram, Executive Director, as saying.