Shriram Finance Ltd. will promote its entire stake in affordable home-finance subsidiary Shriram Housing Finance Ltd. (SHFL) to Warburg Pincus’s affiliate Mango Crest Investment Ltd. which, along with the holding Mango purchased from Valiant Partners, takes the transaction worth to ₹4,630 crore.
The board of Shriram Finance Ltd., which met right here on Monday, accredited the proposal. The firm stated it will obtain a minimal consideration of ₹3,909 crore together with sure extra quantities primarily based on the prevalence of recognized occasions.
The proposed transaction can be topic to receipt of relevant approvals from regulatory authorities and fulfilment of different customary circumstances.
“As per reasonable estimates, the expected time of completion of the transaction is February 7, 2025,” it stated in a submitting with exchanges. The purchaser has additionally dedicated to speculate an extra ₹1,000 crore into SHFL as a part of development capital for the housing finance lender.
“This is Warburg’s biggest deal in India ever since it entered and this is the biggest deal in affordable housing space,” stated Umesh Revankar, Executive Vice Chairman,
Shriram Finance Ltd.
“This is a win-win deal because Shriram Housing gets growth capital and a global investor will back it. Shriram Finance gets capital to fund its own growth,” he stated.
“The existing team at Shriram Housing will continue to run the business under the new investor,” he added. Post the deal, Shriram Housing will go for a rebranding and drop the “Shriram” identify,” he added.
