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Informist, Thursday, Nov. 7, 2024

--Shriram Housing MD: Warburg Pincus to buy controlling stake in co in Nov

 

By Christina Titus and Kabir Sharma

MUMBAI – Warbug Pincus is expected to complete the acquisition of Shriram Housing Finance Ltd. by the end of this month, Ravi Subramanian, managing director and chief executive officer of the housing finance company, told Informist on the sidelines of the Business Standard BFSI Summit Thursday. Media reports had earlier said that the stake sale of Shriram Housing Finance by parent Shriram Finance Ltd. may be completed by the end of the current financial year.

 

Shriram Finance holds controlling stake in Shriram Housing Finance, and private equity firm Valiant Partners L.P., Mauritius, holds the remaining. As part of the sale, Valiant Partners will also divest its entire stake to Warburg Pincus.

 

Shriram Finance got approval from the Reserve Bank of India to sell its stake in Shriram Housing Finance for INR 46.3 billion on Oct. 21. This is the largest stake sale so far in the affordable housing finance sector in India. Shriram Finance's board had approved the stake sale in May, and the company got approval from the Competition Commission of India three months later.

 

Shriram Housing Finance reported a net profit of INR 2.17 billion for the financial year ended March, up 57.8% from the previous year. The total assets under management of the company stood at INR 137.62 billion at the end of March.

 

At 1442 IST, shares of Shriram Finance were down nearly 4% at INR 3,060.75 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Ashish Shirke

 

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