Shriram Finance finalises ₹3,929 crore stake sale in housing unit to Warburg Pincus – CNBC TV18

Shriram Finance, the flagship entity of the Shriram Group, announced the completion of the sale of its 84.44% stake in its housing finance subsidiary, Shriram Housing Finance Limited (SHFL), to Warburg Pincus affiliate Mango Crest Investment Ltd for ₹3,929 crore.

The transaction, which has received all necessary regulatory and stakeholder approvals, marks a significant milestone for the company.

Commenting on the development, Umesh Revankar, executive vice-chairman of Shriram Finance, said: “We are pleased to announce the completion of this transaction and extend our heartfelt best wishes to the team as they embark on this new chapter under Warburg Pincus. We are confident that the team will continue to drive success through financial inclusion and affordable housing for individuals.”

The decision to divest SHFL was approved by Shriram Finance’s board in June, as part of a strategic initiative to concentrate on core operations and secure growth capital. SHFL, an affordable housing finance leader with a pan-India presence of 155 branches, reported assets under management (AUM) of ₹13,762 crore and a net worth of ₹1,924 crore as of March 2024.

Advisors for the transaction included JM Financial, Barclays, and Avendus, with legal advice provided by Trilegal, Anagram, and Cyril Amarchand Mangaldas.

Shriram Finance stated that the move aligns with its strategic priorities, enabling a sharper focus on core business segments and fostering long-term sustainability. SHFL, known for its contributions to financial inclusion, is poised to accelerate growth under Warburg Pincus’ ownership and guidance.