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Asset financing firm Shriram Transport Finance plans to foray into the insurance broking business and is awaiting the nod from the regulator IRDA, a top company official said today.
"That is our third subsidiary. We are planning to enter into insurance broking. We have applied for approval from IRDA (Insurance Regulatory and Development Authority) about four months back," Shriram Transport Finance Company Managing Director Umesh Revankar told reporters here.
Noting that diversification into the insurance broking business was part of capitalising its nine lakh customers, he said, "we are yet to structure that (insurance broking) company."
The other two subsidiary companies are Shriram Equipment Finance and Shriram Automall India.
Revankar and top company officials were here to announce Shriram Transport Finance proposal to raise Rs 750 crore through secured non-convertible debentures.
The NCD issue aggregating up to Rs 375 crore with an option for over-subscription up to Rs 375 crore opens for subscription on July 16.
Elaborating, Revankar said, "It comes with unique feature of monthly payment option. This will be a very good instrument for investments".
The company has target 80 per cent of the issue for individuals and to high-networth individuals, he said, adding the funds raised would be utilised for financing activities including lending and investments.
Shriram Transport Finance, as of March 31, 2013, has Assets Under Management (AUM) of Rs 50,120 crore. It has 539 branches and has over 16,000 employees.
