Warburg Pincus acquires Shriram Housing Finance for Rs 4630 crore
private equity firm Warburg Pincus has fully acquired Shriram Housing Finance Ltd (SHFL) from its promoter Shriram Finance and minority shareholder Valiant Capital Management for Rs 4630 crore, in the largest M&A deal in the housing finance sector.
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The deal will allow Warburg to foray into the ever expanding affordable housing space in the world's fourth largest economy.
The New York-headquartered private equity firm finalised the deal on Monday with Chennai-based non-banking finance company (NBFC) Shriram Finance, which owned 84.82% in the mortgage lender.
San Francisco-based PE Valiant Capital Management owned the remaining stake.
Warburg Pincus will acquire the stakes through its affiliate Mango Crest Investment Ltd from all the sellers. The transaction, which covers equity and all convertible instruments of SHFL, is subject to regulatory approvals.
ET had on April 3 reported the Warburg Pincus emerged as the frontrunner to acquire one of the fastest growing housing finance companies in the country, leaving behind competitors such as Bain Capital, CVC and Advent
«Warburg Pincus remains excited about the affordable housing finance segment in India,» Narendra Ostawal, head of India private equity, Warburg Pincus, said.
According to the deal., the entire management of SHFL including managing director Ravi Subramanian will join the new owner and continue to spearhead the business. The company has a pan-India presence with 155 branches and assets
