Shriram Finance looking to sell stake in housing finance arm
ECONOMY & POLICY

Shriram Finance looking to sell stake in housing finance arm

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.

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.

Next Story
Real Estate

Swamiraj Rebrands as House of Swamiraj, Announces Rs 210 Cr Project

In a strategic shift marking its evolution from a reputed builder to a lifestyle-focused brand, Swamiraj Constructions has rebranded as House of Swamiraj. With a two-decade legacy and over 1,700 homes delivered across the Mumbai Metropolitan Region (MMR), the company is embracing a new phase centred on community-driven, wellness-oriented living. The rebranding was unveiled via a digital campaign titled #BeyondDimensions, executed in three phases—teaser, engagement, and launch. The campaign spotlighted the brand’s renewed commitment to designing homes that go beyond function to foster ..

Next Story
Resources

Morpho Dimensions Set to Cross Rs 1 billion Revenue in FY 25–26

Morpho Dimensions, a venture of acclaimed architecture and design firm Morphogenesis, is transforming India’s office interiors landscape with a technology-first, design-led approach. With a secured orderbook of Rs 700 million and additional projects in the pipeline, the firm is confidently on track to cross Rs 1 billion in revenue in FY 2025–26. By combining Artificial Intelligence (AI), Building Information Modelling (BIM), and Virtual Reality (VR), Morpho Dimensions enables clients to visualise and step into immersive, ready-to-operate workspaces within 90 days—ushering in a new bench..

Next Story
Real Estate

TOTO’s NEOREST Surpasses 4 Million Global Shipments

TOTO has announced that its flagship smart toilet, NEOREST, has surpassed 4 million global shipments as of March 2025, marking a major milestone in the evolution of luxury sanitation and setting a new global benchmark in design-led hygiene innovation. Launched in 1993 with the aim to redefine conventional toilets, NEOREST has consistently merged cutting-edge technology with minimalist design. Over three decades, it has become a category-defining product, earning global acclaim with prestigious honours including the iF Design Award, Red Dot, and Green Good Design Awards. The integrate..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?