BPEA EQT formerly Baring PE Asia is in advanced negotiations to buy into Shriram Housing Finance Ltd (SHFL) a mortgage subsidiary of Shriram Finance. Shriram Housing Finance had assets under the management (AUM) of Rs 7,200 crore at the end of December.
Shriram Finance hold 85% of the housing finance subsidiary while the rest is with Valiant Mauritius (P) Ltd. The group is yet to take a final call on the quantum of the stake.
As per the company, the discussions are still on with prospective investors for fund raising.” Multiple people are in the fray,” he said, expecting to close the deal within the first quarter of the next fiscal year.
The mortgage lender with a focus on the affordable housing segment has risen fast in the past few years from an AUM of Rs 1,000 crore at the end of September 2015. It started operations in November 2010 getting registered as a housing finance company with the National Housing Bank in August next year. Last year, it received a total equity infusion of Rs 500 crore from the parent.
About 30-40% of the Shriram Housing’s business comes from the southern states- Karnataka, TN, AP, Telangana. It also has a presence in Gujarat. With the network of 94 branches it has an average loan size of Rs 16.6 lakhs.
