The Shriram Group is in talks with US-based fund management giants Warburg Pincus Llc and Bain Capital LP to sell its housing arm Shriram Housing Finance Ltd for around ₹5,000 crore, two people directly familiar with the development said.
Shriram Housing Finance is a midsize housing finance company with assets of over ₹10,000 crore. The sale is part of the Chennai-headquartered conglomerate’s plan to redesign its growth strategy.
A Shriram Group spokesperson declined to comment.
Over the past few weeks, the bankers appointed by the group's listed flagship Shriram Finance Ltd, which holds 85% in Shriram Housing Finance as the promoter, opened discussions with Bain Capital and Warburg Pincus, the people cited above said. If the negotiations conclude, a deal could be closed before the June quarter, they added.
"(We) Have received a phenomenal interest from several suitors. There are buyers with bids of up to ₹5,000-5,500 crore and offers are still coming. It's a neat business and bidders are credible. So, evaluation before a sale may not take much time," the first of the two people cited above said.
The Shriram Group has appointed investment bankers from Barclays Bank Plc, JM Financial Ltd and Avendus Capital Pvt. Ltd to shortlist buyers, the two people added.
Spokespeople from JM Financial and Barclays declined to comment while queries sent to Bain, Warburg Pincus and Avendus remained unanswered.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Cement firms wage war on costs as competition soars
India's cement makers who once flexed their pricing muscles are caught in a bruising price war, eroding margins at a time of rising demand.
Saudi Arabia doesn’t have enough money for its futuristic city
The giant futuristic planned city of Neom is proving a headache for Saudi Arabia. Costs are up, schedules are delayed, and in recent days the world’s largest construction project replaced its chief executive of six years.
EV adoption is a marathon, not a sprint: Audi India
The slowdown in electric vehicle (EV) sales is temporary, and the industry will grow over time, Audi India head Balbir Singh Dhillon said, pointing to the need for extensive charging networks and supportive government policies.
India's trade gap with China soars in Apr-Oct
The country's green transition increases reliance on Chinese imports
14 nations eye India's generic drug model
Countries will specify their requirements, with HLL and MEA coordinating with them for the pharma exports
India urges $1.3 tn annual climate grant
Intervening on behalf of like-minded developing countries (LMDCs), India said that developed countries need to commit to provide and mobilise at least $1.3 trillion every year in the New Collective Quantified Goal (NCQG) till 2030.
Over 600 mn cyberattacks daily, AI can secure devices
Microsoft is developing a password-free authentication process to eliminate the risk of breaches
Small businesses ramping up cybersecurity, thanks to AI
Rising AI adoption is helping cybersecurity providers hike their marketable base in India
SBI set to raise $1.25 bn, India's biggest bank loan of 2024
State Bank of India plans to borrow up to $1.25 billion, in what would be the largest dollar-denominated loan from the country's financial sector this year, said two people in the know.
Festival retail auto sales up 12%: Fada
Festive period sales from 3 Oct to 13 Nov came in at about 4.3 mn units, compared to last year's 3.8 mn units
