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
Infrastructure Urban

3i Infotech Reports Rs 7.25 Bn Revenue for FY25

3i Infotech, a leading provider of digital transformation, technology services and technology solutions, announced its consolidated financial results for the fourth quarter and full year FY25, ended on March 31st, 2025. The company maintained its growth momentum, displaying consistent progress for the 3rd consecutive quarter.In Q4 FY25, 3i Infotech reported revenue of Rs 1.87 billion, reflecting steady performance compared to Rs 1.81 billion in Q3 FY25 and Rs 1.97 billion in Q4 FY24. The company delivered strong profitability improvements, with gross margin growing by 14.8 per cent Q-o-Q and 1..

Next Story
Infrastructure Urban

Emerald Finance Joins Baya PTE to Boost SME Bill Discounting

Emerald Finance is a dynamic company offering a spectrum of financial products and services including its flagship Earned Wage Access (EWA) in India, has entered into a strategic partnership with Singapore-based Baya PTE through its Indian subsidiary. This collaboration aims to strengthen bill discounting services for Small and Medium Enterprises (SMEs), enabling faster access to working capital and improved cash flow management.The initiative is designed to support SMEs that supply to large corporates such as JSW Steel, Delhivery, and PVR INOX, among others. By facilitating timely invoice dis..

Next Story
Infrastructure Urban

BLS E-Services Crosses Rs 5 Bn Revenue Mark in FY25

BLS E-Services, a technology-enabled digital service provider, announced its audited consolidated financial results for the quarter and full year period ended 31 March 2025.Speaking about the performance and recent updates, Shikhar Aggarwal, Chairman, BLS E- Services said, “We are delighted to report a remarkable performance in FY25, as we achieved several milestones during the fiscal year. FY25 marked our highest-ever financial performance, as we surpassed Rs 5 billion milestone in Total Income during the year, which was reported at Rs 5.45 billion, a notable YoY growth of 76 per cent. The ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?