Monday, February 14 2005 19:15 Hrs (IST) - World Time -

Bangalore: Chennai-based non-banking finance company Shriram Group will raise Rs 105 crore from Uno Investments, a subsidiary of private equity fund ChrysCapital, to fund its fast growing truck finance business operations.

Shriram will offload close to 30 per cent equity stake in three of its units - Shriram Investments, Shriram Transport Finance and Shriram Overseas Finance to Uno Investments, Shriram Investments Managing Director Akhila Sriram told sources in Bangalore.

She said the three units will be merged into a single entity over the next 18 months to make Shriram, the largest truck financing NBFC in the country.

"We will be closing with profits in excess of Rs 100 crore by March this year," Sriram said, adding the group was managing funds in excess of Rs 6,000 crore, which includes fee-based funds of CitiCorp and UTI Bank, besides deposits raised from the public.

Srinivasan said the truck financing space was growing at at 30 per cent annually as 70 per cent of the goods movement in the country was by roads.

She said the group's Shriram City Union Finance, which was financing trucks is now focusing on consumer finance and has provided finance to the tune of Rs 584 crore including a line of credit from ICICI Bank, Development Credit Bank and UTI Bank.

"Our consumer finance will grow upwards of Rs 1000 crore and we will leverage our huge branch network," Srinivasan said.

The Shriram Board will finalise the proposal at its board meet on February 16.