CCI approves Warburg Pincus' acquisition of Shriram Housing Finance, other key transactions

In its statement issued on Tuesday, the CCI noted that Mango Crest, which is incorporated in Mauritius, is primarily engaged in "undertaking investment holding activities."

The Competition Commission of India (CCI) has approved Warburg Pincus' acquisition of Shriram Housing Finance through its affiliate, Mango Crest Investment. The transaction, valued at Rs 4,630 crore, has been cleared by the antitrust regulator.

In its statement issued on Tuesday, the CCI noted that Mango Crest, which is incorporated in Mauritius, is primarily engaged in "undertaking investment holding activities."

Additionally, the CCI has approved two other significant transactions. These include IndusInd International Holdings' acquisition of a majority stake in both Invesco Asset Management (India) and Invesco Trustee. The Commission also cleared a deal involving Apollo Hospitals and Advent International.

Apollo Hospitals had previously announced plans to raise Rs 2,475 crore through Advent International for Apollo HealthCo, which oversees the Apollo 24/7 platform. The transaction also involves a proposed merger of Keimed, a wholesale pharma distribution business, with Apollo HealthCo within the next 24 to 30 months.

Shriram Finance Limited (SFL), in its board meeting on May 13 said that it has approved the sale of its housing finance subsidiary Shriram Housing Finance Limited (SHFL) to Warburg Pincus.

On December 15, Moneycontrol reported that Shriram Finance is revisiting options to unlock value in Shriram Housing Finance Ltd and has launched a process to sell a controlling stake in the subsidiary.

Shriram Housing Finance is likely to retain all employees after the stake sale to Warburg Pincus as shareholders want the current growth momentum to continue, a top company executive said.

“The company is growing at 56 percent CAGR, and when you are growing you will continue to have the people," Shriram Finance executive vice chairman Umesh Revankar said in an exclusive interview with the Moneycontrol on May 14. "There is no point in laying off people. The shareholders also want growth.”

There are 3,232 employees in the company, according to its latest investor presentation. The company said the housing arm’s assets under management increased at a compound annual growth rate of 56 percent over the past four years.

“We can expect similar growth after the completion of deal,” Revankar said.

(With inputs from Agencies)