Here’s a rephrased version of the text:
- Born into a middle-class Brahmin family in Chennai, R. Thyagarajan aspired to become financially independent. While searching for opportunities, he came across an intriguing advertisement. 🤔
- In 1961, New India Assurance, a general insurance company, offered a training stipend of ₹500—unusually high when most companies didn’t pay more than ₹300. He was one of only 12 people selected for the position and spent the next decade working in commercial financing. But then, a significant change occurred. 👇
- On September 20, 1972, the Indira Gandhi-led government nationalized the general insurance sector, which included 55 Indian companies. At 37 years old, Thyagarajan realized it was time to move on and build something of his own. He envisioned financing people without a credit history, and an idea sparked. 💡
- The idea was straightforward ⏩ A chit fund, where the collected money is distributed to one investor monthly until everyone has received their share. He planned to use this money to buy trucks and offer financing at a 37% interest rate when the market rate was 80%. On April 5, 1974, Shriram Chits was launched. 🚀
- Thyagarajan’s idea quickly gained momentum and eventually evolved into Shriram Transport Finance Company (STFC) in 1979. The company grew to hold deposits worth ₹800 crore from 200,000 depositors and was listed on the stock market in 1984. Impressed by its growth, Tata Motors and Ashok Leyland acquired a 15% stake in STFC in 1990. 💰
- But then, in 1998, the RBI raised concerns. It cautioned depositors that their money might be at risk because STFC was lending to finance 5-10-year-old pre-owned trucks. Thyagarajan personally spoke to every depositor over the next three months, reassuring them of his business model. And then, something remarkable happened! 🪄
- As the company managed over ₹3,000 crore in assets with a profit of ₹100 crore by 2006, it raised ₹700 crore from TPG and Chrys Capital, becoming a ₹1,000 crore company. 📉
- By 2009, STFC had purchased hypothecation loans from commercial vehicle maker General Electric and expanded into construction equipment financing. It securitized ₹8,757 crore worth of loans and raised ₹584 crore, crossing ₹50,000 crore in managed assets by 2013. 💵
- With its ratings upgraded to AA+, STFC raised ₹25,100 crore by issuing India’s first Masala Bonds—Senior Secured Rupee Denominated bonds—on the Singapore Stock Exchange. Thyagarajan had made history as Shriram Group crossed the trillion-dollar mark, managing assets worth ₹100,000 crore in 2019. 🙌
- Today, the Shriram Group is involved in housing, insurance, transport, wealth management, and real estate. Its flagship entity, Shriram Finance (renamed from STFC in November 2022), manages assets worth ₹233,443 crore, while the group as a whole is valued at ₹70,400 crore, serving over 23 million customers. 💪
➡️ But perhaps the most remarkable part is that R. Thyagarajan still doesn’t own a mobile phone, drives a ₹4 lakh car, and has donated shares worth ₹6,120 crore to his employees. 🙏