Shriram Finance shares surge 5% in trade and are the top gainers on the Nifty after the company’s announcement to sell its housing finance arm to Warbug Pincus. Shriram Finance share price hit an intraday high of Rs 2,417 in the morning trade. As of 9:40 AM, shares of Shriram Finance were up 2.57% at Rs 2,360 on the NSE.
The proposed transaction is valued at Rs 4,630 crores for equity and convertible instruments of SHFL. The transaction is subject to regulatory approvals. SFL holds a controlling stake in SHFL while private equity firm Valiant Partners L.P. (Valiant), Mauritius, holds the remaining ownership. As a part of this transaction, Valiant will also completely divest its equity stake to Warburg Pincus.
SFL is one of the India’s leading NBFCs, serving over 84 lakh customers across India offering commercial vehicle loans, two-wheeler loans, and MSME financing. SHFL – one of India’s leading players in the affordable housing segment, has built a strong growth trajectory, playing a transformational role in the Indian housing financing industry. The company has been reporting a robust AUM growth rate of 56% CAGR over the last 4-year period.
