Shriram Finance on Wednesday announced the completion of the sale of its entire stake of 84.44% in its housing finance subsidiary, Shriram Housing Finance (SFHL), to Warburg Pincus, a leading global growth investor firm, for a consideration of Rs 3,929 crore, the company said.
“We are pleased to announce the completion of this transaction and extend our heartfelt best wishes to the team as it embarks 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,” said Umesh Revankar, executive vice chairman, Shriram Finance.
The sale will allow the company to focus on its core business segments and growth areas.
In June, the board of Shriram Finance approved the sale of its housing finance subsidiary to Warburg Pincus to focus more on its core operations and secure growth capital. SHFL has a pan India presence with 155 branches, assets under management of Rs 13,762 crore and a net worth of Rs 1,924 crore as of March 2024.
JM Financial, Barclays and Avendus acted as financial advisors to SFL, SHFL and Valiant. Trilegal and Anagram were legal advisors to Shriram Group and Valiant, while Cyril Amarchand Mangaldas advised Warburg Pincus on the transaction.