Sundaram Home Finance looks to raise Rs 2,500 crore

On the outlook, Lakshminarayanan said while the longer-term outlook remains strong with the demand for housing being expected to grow in coming years.

Sundaram Home Finance on Wednesday said that to fund its growth plans, the company is looking to raise Rs 2,500 crore this year through a mix of debt instruments and bank funding. The home finance subsidiary of Sundaram Finance on Wednesday registered a net profit of Rs 40.04 crore for Q1 of FY22, against Rs 33.94 crore in the same quarter the previous year, registering an increase of 18%.

The company has reported disbursements of Rs 249crore, compared to Rs 99.98 crore, the company said in a statement.

Lakshminarayanan Duraiswamy, MD, said, “The second wave of Covid led to an uncertainty during the quarter, but the relaxation of lockdown in most states in June led to a partial bounce back in demand in the real estate space towards the end of Q1. The disbursements in Q1 were driven by mid-market segments, especially the salaried class in tier II and III towns.”

On the outlook, Lakshminarayanan said while the longer-term outlook remains strong with the demand for housing being expected to grow in coming years. “We are cautiously optimistic on the growth prospects for the rest of the year and believe that the worst is behind us,” he said.