SE Investments plans low-cost housing company

MUMBAI: Shortly after Dewan Housing and Muthoot Group announced their plans to foray into the low-cost housing segment, UP-based non-banking firm, SE Investments today said it would float a subsidiary targeting low-income clients.

The company, which is a leading player in the micro finance space, aims to float a separate subsidiary in the next one month and plans to approach the National Housing Bank soon for necessary approval. It would initially launch operations in four states--UP, Rajasthan, Gujarat and Delhi.

"We plan to float a subsidiary for housing finance and the process is already on. We will target low-income customers, who do not have capacity to approach big banks for financial assistance," SE Investments' Managing Director and CEO, Sunil Agarwal told PTI here.

The company is also in the process of raising around Rs 200-crore from domestic and overseas investors through QIP route to fund its growth plans, Agarwal said.

"There is a huge demand for loans in the low-cost housing segment and we see lot of opportunities there. The company will give loans upto Rs 5-lakh to customers," Agarwal said. "We are talking to a host of investors to raise as much as Rs 200-crore," he added.

Early this year, SE Investments had raised close to USD 40-million through the issue of Global Depository Receipts and has already infused bulk of the issue proceeds to boost its business operations.