Shriram Finance stock in focus after selling 84% stake in housing finance arm to Warburg Pincus for Rs 3,929 crore

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

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26 Aug, 2025 12:21

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Shriram Finance Ltd shares will be in focus on December 12, after the NBFC divested a majority stake in Shriram Housing Finance Limited (SHFL), its housing finance subsidiary.

The Shriram group firm offloaded a 84.44 percent stake in SHFL, with Warburg Pincus affiliate Mango Crest Investment picking it up for Rs 3,929 crore.

Shriram Finance transferred 30.8 crore equity shares of SHFL to the Warburg Pincus firm and SHFL ceased to be subsidiary of the firm. "The transaction marks a significant milestone, with all
requisite approvals from regulatory authorities and stakeholders duly secured," said the firm in a filing with the bourses.

The firm said the sale aligns with its strategic priorities, allowing it to sharpen its focus on its core business segments and growth areas. "This transition underscores Shriram Finance's commitment to creating value for its stakeholders while fostering long-term sustainability," it added.

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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."

"We have been big believers of penetration of retail credit in India across various product categories and I would say housing comes at the top of the stack. It is amongst the most secured products and perhaps amongst the most critical needs in the lending space as far as the retail consumer is concerned,"  Narendra Ostawal, MD and head of the investment advisory activities of Warburg Pincus in India had said to Moneycontrol earlier this year.

Ahead of Warburg Pincus' purchase, sources said that the Reserve Bank of India (RBI) had directed private equity giant Warburg Pincus to lower its stake in mortgage lender Home First Finance from 23 percent to 20 percent or below.

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