Shriram Finance has completely exited the home loan business. On Wednesday, the company sold its entire 84.44% stake in its housing finance subsidiary to Warburg Pincus and its affiliate firm Mango Crest Investment. The deal was done for Rs 3,929 crore.
Warburg Pincus is a leading private equity (PE) company. It is also called a global growth investment firm. It invests in businesses around the world that have the potential for rapid growth. The remaining 15.56% stake in Shriram Housing Finance was held by PE firm Valiant Partners LP, Mauritius. It also sold its entire stake to Warburg Pincus. In this way, Warburg Pincus now has 100% stake in Shriram Housing Finance.
Shriram Housing Finance and Home First Finance are non-banking financial companies (NBFCs). They provide loans for buying affordable homes (up to Rs 40 lakh). Home First Finance is a company listed on the stock exchanges. But Shriram Housing Finance is a non-listed firm.
