Baring PE Asia looks to pick up stake in Shriram Housing Finance

BPEA EQT, previously Baring PE Asia, is currently in advanced negotiations to buy into Shriram Housing Finance Ltd (SHFL), a mortgage subsidiary Shriram FinancePeople familiar with the subject said that they were not surprised.

Shriram Housing Finance assets under management (AUM). Rs 7,200 crore at the close of December. Baring PE Asia Had been one of the main contenders to buy. ICICI Home Finance… a deal that didn’t materialize.

While Some people believe BPEA might be interested in a controlling position stake In the company, a senior Shriram Housing Finance Executive denied any buyout rumour. He Discussions are continuing with potential investors to fund raise and the closing of the deal. Shriram Group We remain committed to the housing finance industry.

Shriram Finance Holds 85% of the housing finance subsidiary, while the rest is with Valiant Mauritius (P) Ltd. The According to the people quoted above, the group will make a final decision on the amount of the stake sale once firm offers have been received.

‘Deal Expected Within Q1, FY24’
A spokesperson for BPEA EQT declined to comment.

“We deny any buyout rumour. Shriram Housing Finance is in the process of raising capital to the extent of $100 million and to that extent there will be a dilution,” Shriram Housing Finance managing director Ravi Subramanian said. “The Shriram Group is firmly committed to the housing finance business. As one of the top-performing housing finance companies, Shriram Housing Finance is a focus area for the group.”Subramanian According to the statement, discussions with potential investors regarding fund raising are continuing. “Multiple people are in the fray,” He stated that the company expected to close the deal by the end of the first quarter in the next fiscal.

The An AUM of £4 billion has seen a rapid rise in the number of mortgage lenders that focus on affordable housing segments. Rs 1,000 crore at the close of September 2015. It Inauguration of operations November 2010. Registering with the Housing Finance Corporation National Housing Bank In August Next year. Last It received a total equity injection of $1.5 million in the year. Rs 500 crore from the parent

“By virtue of the strong parentage, SHFL also stands to benefit from the established track record of the group in lending to the self-employed segment in tier-II and smaller towns, which is the customer profile for SHFL as well,” A recent Care Rating report. “The ratings take note of the significant growth in AUM over the last 3.5 years.”

About 35-40% Shriram Housing’s The southern states are a source of business – Karnataka, Tamil Nadu, Andhra Pradesh Telangana. It It is also present in Gujarat. With The average loan size for this network is $1,500. It has 94 branches. Rs 16.6 lakh.

Last year, European Acquisition of buyout fund EQT Baring Private Equity Asia For $7.5 Billion It Closed its eighth private equity fund – the Baring Asia Private Equity Fund VIII – Total capital commitments of $11.2 million BPEA also holds a 9.98% share in RBL Bank Its vehicle Maple II BV.

BPEA EQT enjoys a strong presence within India Buyouts, such as Hinduja Global Solutions Limited (HGS) and CitiusTech, AGS Healthcare Coforge Ltd (formerly NIIT Technologies).

In the past few months, the housing finance sector has become active in terms of M&A deals. Poonawalla Fincorp It was sold to its subsidiary Poonawalla Housing Finance To Perseus SG Pte LtdTPG is affiliated with a company called. Global LLC. Rs 3,900 crores Centrum Housing Finance Signed a binding business transfer contract with the National Trust Housing Finance (Natrust) to acquire its housing finance business, branches and employees.