Shriram Finance finalises sale of housing finance unit to Warburg Pincus

Shriram Finance Limited, a major player in India’s non-banking financial services sector, has concluded the sale of its majority stake in Shriram Housing Finance Limited to Mango Crest Investment Limited, an affiliate of the global investment giant Warburg Pincus. The transaction, valued at an impressive INR 3,929 crore, sees Shriram Housing Finance transition into the ownership of Warburg Pincus, marking a pivotal moment in its operational history.

This divestment involved the transfer of 308,111,107 equity shares, accounting for an 84.44% stake in Shriram Housing Finance. Regulatory approvals, which are often complex and time-intensive, were successfully obtained, underscoring the meticulous execution of this deal. Shriram Housing Finance, recognised for its focus on affordable housing loans catering to underserved segments, has been instrumental in Shriram Finance’s broader mission of advancing financial inclusion.

Umesh Revankar, Executive Vice Chairman of Shriram Finance, highlighted the strategic importance of this move. He noted that the sale aligns with the company’s efforts to streamline its core business operations while fostering the growth of its subsidiaries. Under the stewardship of Warburg Pincus, he expressed optimism that Shriram Housing Finance would continue to scale new heights, furthering its mission to provide affordable housing solutions.

The sale is not merely a financial transaction but a strategic pivot for Shriram Finance. As one of India’s largest non-banking financial companies, with an Asset Under Management exceeding INR 2.43 trillion, the company is now poised to focus more intensively on its primary business lines, including consumer finance, commercial vehicle loans, and SME funding.

Shriram Housing Finance, under its new ownership, is expected to leverage Warburg Pincus’ global expertise to expand its reach and deepen its impact in India’s housing finance sector. Industry observers suggest this acquisition reflects the growing attractiveness of India’s housing finance market, particularly in the affordable segment, for international investors.