Shriram Finance Ltd. will sell its entire stake at an affordable price to Warburg Pincus subsidiary Shriram Housing Finance Ltd. (SHFL) Mango Crest Investment Ltd., which, along with Mango holding company bought from Valiant Partners, values the deal at ₹4,630 crore.
The board of directors of Shriram Finance Ltd., which met here on Monday, approved the proposal. The company said it would receive a minimum amount of ₹3,909 crore along with certain additional amounts depending on the occurrence of identified events. The proposed transaction will be subject to obtaining appropriate regulatory approvals and other customary conditions. “According to reasonable estimates, the expected completion date of the transaction is February 7, 2025.” – it was written in the notification to the stock exchanges. The buyer has also committed to invest an additional ₹ 1,000 crore in SHFL as development capital for the housing finance lender.
“This is Warburg’s largest transaction in India since its inception and its largest affordable housing transaction,” said Umesh Revankar, Executive Vice President, Shriram Finance Ltd.
“It is a win-win deal as Shriram Housing will get development capital and a global investor will back it. Shriram Finance is raising capital to finance its own growth,” he said.
“The existing Shriram Housing team will continue to lead the company under the leadership of the up-to-date investor,” he added. After the conclusion of the agreement, Shriram Housing will be rebranded and will drop the name ‘Shriram’, he added.
