Piramal Finance has entered into a share purchase agreement to sell its entire 14.72% equity stake in Shriram Life Insurance Company to Sanlam Emerging Markets (Mauritius) Limited for ₹600 crore. The stake sale will raise Sanlam’s total holding in Shriram Life to 38%.
“This Transaction is aligned with our focus on monetizing non-core assets and we will continue doing the same for our other residual non-core assets. The proceeds from the Transaction will further strengthen our balance sheet. SEMM, incorporated in Mauritius, is a 100% subsidiary of Sanlam Emerging Markets Pty (Ltd) and is part of the Sanlam Group,” Piramal Finance said in an exchange filing on Friday.
Strategic Shift to Monetise Non-Core Assets
Shriram Life, which focuses on the rural and middle-income segments, is jointly promoted by the Shriram Group and South Africa-based Sanlam Group. As of June 2025, Shriram Capital held a 47% stake in the company, while Sanlam Emerging Markets (Mauritius) owned 23%. Piramal Finance and TPG India Investments held around 15% and 7% ,respectively, as investors while domestic investors held the remaining 3%.
Capitalising on the 100% FDI Insurance Reform
The stake sale comes a day after the government raised the foreign direct investment (FDI) limit in the insurance sector to 100% from 74%. The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025 was passed by both Houses of Parliament on Wednesday, paving the way for the implementation of the Insurance Act, 2025.
Shriram Life Insurance Company reported a 20% year-on-year increase in total premium collections to ₹1,954 crore in the first half of FY26. According to Piramal Finance, Shriram Life contributed ₹12.68 crore to its FY25 revenue, or about 0.12%, in the form of dividends.
The Transaction is expected to close in the quarter ending 31st March 2026, subject to receipt of requisite regulatory approvals, including approval of the Insurance Regulatory and Development Authority of India.
Shares of Piramal Finance jumped 5% to close at ₹1,612.50 on Friday.