SRG Housing Finance extends closure of IPO amid bank strike

MUMBAI: The two-day nation-wide strike of banks has prompted SRG Housing Finance to extend closure of its Rs 7-crore initial public offering.

While the issue opened on August 22, it is now rescheduled to close on August 28 instead of August 24, said the company. The Udaipur-based housing finance company has entered the capital market with a public issue of 35,04,000 shares at a price of Rs 20 per share.

SRG Housing Finance will list on BSE's SME platform. This will be the seventh issue to debut on the SME exchange promoted by Asia's oldest stock exchange. SRG Housing Finance offers individual home loans and loans against property.

Presently, it has one head office and three satellite centers located in Rajasthan. The company is planning to open another 10 satellite centers which will be located in tier-II cities, tier-III cities, district and tehsil head quarters and at the peripheries of tier-I cities.

The issue proceeds will be utilized to augment the capital base and to meet fund requirements for increasing operational scale with respect to disbursement of housing loans and related activities.

The capital base is being enhanced by Rs 6.4 crore. The outstanding loan portfolio of SRG Housing Finance has grown at a CAGR of 24% from Rs 3.2 crore as on March 31, 2008 to Rs 7.6 crore as on March 31, 2012.

Its net profit has improved at a CAGR of 30% from Rs 11 lakh to Rs 32 lakh during the same period.