Not giving Sanlam more than 50% stake in Shriram Wealth, says Shriram Capital CEO

Subhasri Sriram, MD & CEO, Shriram Capital

South Africa-based Sanlam Group’s plan to raise its stakes in Shriram Life and Shriram General Insurance, announced in 2024, has been delayed due to internal restructuring, managing director and chief executive officer of holding company Shriram Capital Subhasri Sriram has said.

The earlier group holding structure has been collapsed and consolidated into the operating companies, she told Moneycontrol. "The acquisition will now happen directly at the operating company level, which has caused a delay in obtaining regulatory approvals," she added.

She said the Piramal Group, which holds stakes in Shriram’s life and general insurance arms, is neither actively looking to exit nor in a rush to do so and will take a call as things unfold.

Piramal became a key stakeholder in the Shriram Group after merging its financial services business with Shriram Capital’s units in 2022 and has since held a strategic interest in the group’s insurance verticals.

Shriram Capital and Sanlam have officially launched a new wealth management arm, Shriram Wealth, with equal ownership.

"We are not giving Sanlam more than a 50 percent stake in Shriram Wealth. They're not looking for more, and we're not offering more either," the CEO said.

The joint venture, announced on June 12, will begin operations with a focus on high-net-worth individuals and gradually expand its offerings.

“In the first year, we’re targeting customers with investable surplus of Rs 2 crore and above. This is to test systems and fine-tune delivery,” Subhasri said.

From FY26, the venture plans to widen its base to include clients with Rs 50 lakh and above, and eventually tap into the Rs 10 lakh-plus segment, where the firm sees significant potential, she added.

Shriram Wealth will start by offering distribution services and later expand into investment advisory. An initial capital infusion of Rs 200 crore will go toward building a strong distribution and advisory team.

The second phase of the business will focus on a tech-led, do-it-yourself model leveraging artificial intelligence for the Rs 10 lakh-plus investor category.

Shriram Wealth is aiming to manage Rs 50,000 crore worth of assets over the next five years, Sriram said.