MC EXCLUSIVE Piramal, KKR seek exit from Shriram General Life Insurance: Sources

Piramal, KKR seek exit from Shriram General Life Insurance

Piramal Finance (formerly known as Piramal Enterprises) is said to have initiated the process to sell its entire holdings in Shriram General Insurance Company. This time around, KKR has also joined the exit process along with Piramal.

Sources aware of the development indicate Rothschild and Ambit Capital have been finalised as bankers to the deal and multiple exit options are being explored. According to a person close to the development, KKR and Piramal Finance are open to the idea of listing Shriram General Insurance. However, if that proposal does not find favour with other investors, they would explore a secondary sale. According to Shriram General Insurance Company’s annual report, Piramal held 13.33 percent stake and KKR held 9.99 percent stake as of March 31, 2025.

“The process has just started,” said a banker who did not want to be named, adding that it would be too early to comment on valuations sought by the sellers.

Emails sent to Piramal Finance and Shriram General Insurance remained unanswered till publishing the article. KKR declined to comment.

Exit rationale

Piramal Finance picked up the stake in the general insurance arm of Shriram group when it was exploring taking a substantial stake in financial conglomerate in 2010. While the Ajay Piramal-led NBFC exited its investment in Shriram Finance in 2023 after the group when through a three-way merger involving Shriram Transport Finance, Shriram City Union and Shriram Capital. Post the exit from Shriram group's lending business, Piramal holds interest in the insurance arms of Shriram group.

In April 2022, KKR picked up 9.99 percent stake in the company from its then existing investors for a valuation of Rs 18,000 crore. “For both these investors, the holding in Shriram General Insurance is a financial investment and not strategic. Hence with the tenure of holding nearing an end, an exit is being contemplated,” said a person aware of the deal talks.

The general insurance arm is held by Shriram Capital, which holds 42.57 percent stake in the company, while R Thyagarajan and DV Ravi through the Shriram Ownership Trust hold 4.45 percent stake. South Africa-based financial services major, Sanlam, is also a major investor in the general insurance business, holding 22.92 percent stake. TPG, an early private equity investor in Shriram group companies, holds 6.29 percent stake.

At present, about 23 percent stake in Shriram General Insurance is up for sale, though depending on investor appetite and market conditions there could be more divestment in the offering, said a banker.