The Competition Commission of India (CCI) has approved Warburg Pincus’ ₹4,630 crore acquisition of Shriram Housing Finance. Mango Crest Investment Ltd, a Warburg Pincus affiliate, will acquire shareholding in Shriram Housing Finance Ltd.
Key Points
- Shriram Finance is divesting its housing finance arm to focus on vehicle finance and small business lending.
- Warburg Pincus commits an additional ₹1,000 crore investment post-deal closure.
- The transaction, announced in May 2023, is expected to conclude by March 2025.
Companies Involved
- Buyer: Mango Crest Investment Ltd (Warburg Pincus affiliate)
- Target: Shriram Housing Finance Ltd (registered with National Housing Bank)
- Seller: Shriram Finance (NBFC serving 84 lakh customers)
Market Impact
This acquisition signifies a major shift in India’s financial services sector, potentially altering the housing finance landscape. It also highlights global private equity firms’ ongoing interest in India’s financial market.
