Shriram Finance' SHFL stake sale to Warburg Pincus gets CCI approval

The Competition Commission of India (CCI) has given approval for Shriram Finance's proposal to sell its complete shareholding in Shriram Housing Finance Limited (SHFL) to Mango Crest Investment Ltd, a subsidiary company owned by the worldwide private equity giant Warburg Pincus.

As per an exchange filing, Shriram Finance is currently waiting for further regulatory clearances after being granted approval by the CCI on August 20, 2024. The transaction worth ₹4,630 crore was approved in accordance with Section 31(1) of the Competition Act, 2002 and updates regarding its progress will be provided accordingly.

SFHL, a housing finance company registered with the National Housing Bank, is undergoing a strategic shift. Earlier this year, Shriram Finance decided to divest its housing finance division in order to concentrate more on vehicle finance and small business lending.

Under the agreement, Warburg Pincus, via its entity Mango Crest Investment Ltd, will acquire SHFL from all existing stakeholders. The transaction is expected to be finalized by the end of March 2025. Upon completion of the acquisition, Warburg Pincus intends to inject an additional Rs 1,000 crore into SHFL.

This move was highlighted by Shriram's Executive Vice-Chairman, Umesh Revankar, who emphasized that this significant investment will support SHFL’s future growth and expansion strategies.

Shriram Finance stands out as a prominent non-banking financial company (NBFC) in India, delivering a comprehensive range of financial services tailored to diverse customer needs. The company specializes in providing commercial vehicle loans, which support the purchase and financing of trucks, buses, and other commercial vehicles.

Additionally, Shriram Finance offers two-wheeler loans, facilitating the acquisition of motorcycles and scooters. Its financial services also extend to micro, small, and medium enterprises (MSMEs), offering essential financing solutions to support business growth and development.

The company is serving over 8.4 million customers nationwide, Shriram Finance plays a significant role in India's financial sector, addressing the needs of both individual and business clients across the country.