Godrej Capital, the financial services arm of Godrej Industries group, is aiming to grow its assets under management to Rs 17,000 crore by the end of the current financial year, as it looks to enter the affordable housing segment this year, managing director Manish Shah said on Wednesday.
The company currently manages an asset base of Rs 13,000 crore, after reaching an AUM of Rs 10,000 crore in FY24. It has a target of to expand it to Rs 30,000 crore by March 2026 and a longer-term goal of achieving Rs 50,000 crore in AUM by March 2028, Shah said.
The company is planning to launch its initial public offering in the next two-three years, and prior to that, it will rely on the parent entity for capital infusion, Shah said.
“Godrej Capital is a mid-layer NBFC. So, we don’t have an RBI (Reserve Bank of India) deadline for us,” Shah said. According to RBI guideline, upper-layer NBFCs are required to be listed within three years of categorisation.
The company currently has about Rs 5,000-crore exposure to the housing business and Rs 8,000 crore to the MSME sector. Its profit before tax in FY24 stood at Rs 56 crore, which is expected to rise to Rs 175 crore in FY25, the MD said.
As of now, the company has a Rs 2,000-crore portfolio in the unsecured business loans segment, and the NPA under it is 0.5%. In the secured lending segment, the NPA is around zero.
Currently, Godrej Capital provides housing loans in 40 cities, and in the next four years, it aims to touch 100 cities. The average ticket size of its home loans is Rs 70 lakh.