Why Is Shriram Finance Selling Its Housing Finance Business To Warburg? Top Management Answers

Shriram Finance Ltd (SFL) has announced that its board has approved the sale of its housing finance subsidiary, Shriram Housing Finance Ltd (SHFL), to private equity giant Warburg Pincus. The acquisition will be made through Warburg Pincus' affiliate, Mango Crest Investment Ltd, from all the sellers. The transaction is valued at ₹4,630 crore for the equity and convertible instruments of SHFL. Umesh Revankar, Executive Vice Chairman of Shriram Finance, discusses the importance of this sale for the company's growth strategy for FY25.