Shriram Finance looking to sell stake in housing finance arm

17 Mar 2023 CW Team

Many private equity firms, notably BPEA EQT, previously Baring PE Asia, have expressed interest in Shriram Housing Finance Ltd., which provides house loans, mostly in the affordable housing category.

The first source added, on condition of anonymity, "The equity infusion will probably be to the tune of 10 billion rupees ($121.46 million)". After weighing all the bids, the corporation might make a decision on the sale by the end of March, the source continued.

Shriram Capital, Shriram City Union Finance, and Shriram Transport Finance merged to establish Shriram Finance, one of India's largest non-banking lending companies, in November. Shriram Home Finance is a division of Shriram Finance.

According to these sources, Shriram Finance's share in the housing segment will decrease from 85% to about 70% following the equity investment.

Since the conversations were still private, the sources declined to be named.

Shriram Finance owned 85% of Shriram Home Finance as of December 31, while Valiant Capital Management, L.P., with headquarters in San Francisco, owned the other 15%.

Private equity investors are shown a lot of interest, according to the second source. The insider further stated that the company is already in advanced discussions with two to three investors. Shriram Housing Finance's spokesman declined to comment, stating that the company does not address rumours.

According to the first source, if the merger is approved, Shriram Housing Finance may have to postpone its intentions for a public listing by at least four to five years.

If the equity sale goes through, the housing financier also intends to raise 40 billion rupees through debt during the upcoming fiscal year, which starts in April. Shriram Housing Finance had 71.78 billion rupees in total assets under management at the end of the December quarter, with more than 10 billion rupees in loan disbursals.

According to two senior people with firsthand knowledge of the situation, Indian shadow lender Shriram Finance is aiming to sell up to 15% of the shares in its housing financing division for a valuation of 10 billion rupees ($121.35 million). Many private equity firms, notably BPEA EQT, previously Baring PE Asia, have expressed interest in Shriram Housing Finance Ltd., which provides house loans, mostly in the affordable housing category. The first source added, on condition of anonymity, The equity infusion will probably be to the tune of 10 billion rupees ($121.46 million). After weighing all the bids, the corporation might make a decision on the sale by the end of March, the source continued. Shriram Capital, Shriram City Union Finance, and Shriram Transport Finance merged to establish Shriram Finance, one of India's largest non-banking lending companies, in November. Shriram Home Finance is a division of Shriram Finance. According to these sources, Shriram Finance's share in the housing segment will decrease from 85% to about 70% following the equity investment. Since the conversations were still private, the sources declined to be named. Shriram Finance owned 85% of Shriram Home Finance as of December 31, while Valiant Capital Management, L.P., with headquarters in San Francisco, owned the other 15%. Private equity investors are shown a lot of interest, according to the second source. The insider further stated that the company is already in advanced discussions with two to three investors. Shriram Housing Finance's spokesman declined to comment, stating that the company does not address rumours. According to the first source, if the merger is approved, Shriram Housing Finance may have to postpone its intentions for a public listing by at least four to five years. If the equity sale goes through, the housing financier also intends to raise 40 billion rupees through debt during the upcoming fiscal year, which starts in April. Shriram Housing Finance had 71.78 billion rupees in total assets under management at the end of the December quarter, with more than 10 billion rupees in loan disbursals.

Technology

28 Oct 2025

Building Faster, Smarter, and Greener!

Backed by ULCCS’s century-old legacy, U-Sphere combines technology, modular design and sustainable practices to deliver faster and more efficient projects. In an interaction with CW, Rohit Prabhakar, Director - Business Development, shares how the company’s integrated model of ‘Speed-Build’, ‘Smart-Build’ and ‘Sustain-Build’ is redefining construction efficiency, quality and environmental responsibility in India.U-Sphere positions itself at the intersection of speed, sustainability and smart design. How does this translate into measurable efficiency on the ground?At U..

Infrastructure Transport

28 Oct 2025

Smart Roads, Smarter India

India’s infrastructure boom is not only about laying more kilometres of highways – it’s about building them smarter, safer and more sustainably. From drones mapping fragile Himalayan slopes to 3D machine-controlled graders reducing human error, technology is steadily reshaping the way projects are planned and executed. Yet, the journey towards digitisation remains complex, demanding not just capital but also coordination, training and vision.Until recently, engineers largely depended on Survey of India toposheets and traditional survey methods like total stations or DGPS to prepare detai..

Real Estate

28 Oct 2025

What Does DCPR 2034 Mean?

The Maharashtra government has eased approval norms for high-rise buildings under DCPR 2034, enabling the municipal commissioner to sanction projects up to 180 m on large plots. This change is expected to streamline approvals, reduce procedural delays and accelerate redevelopment, drawing reactions from developers, planners and industry experts about its implications for Mumbai’s vertical growth.Under the revised DCPR 2034 rules, buildings on plots of 2,000 sq m or more can now be approved up to 180 m by the municipal commissioner, provided structural and geotechnical reports are certified b..