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.
Denne historien er fra January 18, 2024-utgaven av Mint Mumbai.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra January 18, 2024-utgaven av Mint Mumbai.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Reduction of energy costs in the telecom sector
With telecom infrastructure companies looking for newer ways to cut back on energy costs, battery restoration technology provides telecom infrastructure firms with a viable, economical and green solution for uninterrupted power supply
Skip cheese and sip wine in Switzerland
Beyond chocolates and cheese, there's another Swiss gem to discover — vineyards that have been passed down through the generations
Bankers aren't always frank about bank regulation
The 'world's banker' Jamie Dimon, CEO of JPMorgan Chase, speaks his mind even if it means taking swipes at US regulators.
Baku: A climate breakthrough looks depressingly bleak today
The success of fossil fuel-favouring politics threatens the planet
Global solidarity levies can play a vital role in our climate efforts
Solidarity taxes could support redistributive measures and optimize how we collectively tackle a great challenge of our times
Speak for the Earth: It's the least we should do
This year's Booker prize winner turns our gaze to the planet from orbit and reminds us of the climate disaster that looms. Can odes sung to Earth move the world to act in its defence?
Aim for an efficient carbon market right from the start
India's economy is projected to grow dramatically over the next few decades. In nominal terms, it may double in size by 2030. This is exciting, but it comes with a significant risk.
Why health insurers refuse to cover certain treatments
While 12 modern treatments are covered, many advanced procedures are yet to be included
Address economic distress with structural reforms and not doles
Cash transfers may offer short-term relief but raising worker incomes is the only lasting solution
FUNDING FOREIGN EDUCATION: SHOULD YOU SAVE OR BORROW?
Education financing needs vary, but early planning is key to building your desired corpus
