Initially a transport finance company, Shriram Finance is now among the leading retail NBFCs in India. It has over 3,000 branches and boasts an AUM of nearly Rs 2 lakh crore
The NSE recently announced that Shriram Finance will replace UPL in the Nifty50 index starting March 28, 2024.
Let’s explore the key growth drivers of Shriram Finance that helped it make its entry into the index.
Established as Shriram Transport Finance Company in 1979, it created a niche in providing commercial vehicle financing services to the lower-income group.
In 1990, it got a boost from Tata Motors and Ashok Leyland's investment room. Later, in 2006, the company reported a PAT of over Rs 100 crore for the first time since its inception
It introduced its subsidiary, Shriram Automall, India’s first auction platform for pre-owned commercial vehicles to create an ecosystem.
Eventually, Shriram Transport Finance Company became a market leader in the pre-owned vehicle segment, with over 135 automalls across India.
In 2014, Ajay Piramal, chairman of Piramal Enterprises, bought a 10% and 20% stake in Shriram Transport Finance and Shriram Capital, respectively.
Soon, Shriram Capital consolidated its presence in the financial services sector, especially the general insurance segment across various regions.