Bain or Warburg—Shriram’s loan, who’ll win?

Summary:

• The Shriram Group is considering selling its housing arm, Shriram Housing Finance Ltd, for around ₹5,000 crore ($693 million).
• US-based funds Warburg Pincus and Bain Capital are reportedly in talks to acquire the company.
• The sale is part of Shriram Group’s plan to refocus its growth strategy.

The Shriram Group, an Indian conglomerate, is in discussions with investment giants Warburg Pincus and Bain Capital to sell its housing finance subsidiary, Shriram Housing Finance. The company is said to be considering a price of around ₹5,000 crore ($693 million). Shriram Group has appointed Barclays Bank, JM Financial, and Avendus Capital as investment bankers to shortlist buyers. If the negotiations are successful, a deal could be concluded by the end of the second quarter of this year. The sale is part of Shriram Group’s broader strategy to redesign its growth plans.