Shriram Finance may sell 15% stake in housing finance arm

Shriram Finance is looking to sell a 15% stake in its housing finance subsidiary Shriram Housing Finance for a valuation of `1,000 crore, news agency Reuters reported on Wednesday, quoting sources.

Shriram Housing Finance, which offers home loans largely in the affordable housing segment, has received interest from several private equity players, including BPEA EQT, the report said.

Shriram Finance declined to comment on the news.

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“We are not commenting on market speculation. As a normal practice, there is always some discussion on for equity or debt. Nothing out of the ordinary in our opinion,” a spokesperson from Shriram Finance said.

As of December 31, Shriram Finance held an 85% stake in Shriram Housing Finance, and San Francisco-headquartered Valiant Capital Management held had the rest.

After the equity infusion, Shriram Finance’s shareholding in the housing financier will fall to 70% from 85%, the report said.