Shriram Finance shares in focus as co sells stake in housing finance biz to Warburg Pincus for Rs 3,929 crore

Shares of Shriram Finance are expected to be in the spotlight on Thursday after the company announced the successful completion of the sale of its entire stake in its housing finance subsidiary Shriram Housing Finance Limited to Warburg Pincus. The company sold its 84.44% stake in the housing business in a deal worth Rs 3,929 crores.

The stake in Shriram Housing Finance was sold to Warburg Pincus’ affiliate, Mango Crest Investment Ltd. The transaction marks a significant milestone, with all requisite approvals from regulatory authorities and stakeholders duly secured, the company said in its press release on Wednesday.

Mr. Umesh Revankar, Executive Vice Chairman, Shriram Finance speaking about the development said, "We are pleased to announce the completion of this transaction and extend our heartfelt best wishes to the team as they embark on this new chapter under Warburg Pincus. We are confident that the team will continue to drive success through financial inclusion and affordable housing for individuals. We look forward to seeing it scale to greater heights under the stewardship of Warburg Pincus."


According to Shriram Finance, the stake sale aligns with its strategic priorities, allowing it to sharpen its focus on core business segments and growth areas.

Shriram Finance Limited is a leading NBFC in India with over Rs. 2.43 trillion in assets under management. It specializes in financing small road transport operators and businesses, particularly in pre-owned commercial vehicles and two-wheelers. As part of the Shriram Group, it also offers services in consumer finance, insurance, housing finance, and stock broking.

On Monday, shares of the company rose 2% to settle at Rs 3,247. The stock has surged 63% in the last one year, meanwhile, it has given 201% returns in the last five years.