Shriram Finance is looking to pare as much as 15% stake in its housing finance arm at a valuation of 10 billion rupees ($121.35 million). Shriram Housing Finance Ltd., which offers home loans, largely in the affordable housing segment, has received interest from several private equity players, including BPEA EQT, formerly Baring PE Asia.
The equity infusion will likely be to the tune of 10 billion rupees ($121.46 million).Post the equity infusion, Shriram Finance's stake in the housing arm will drop to around 70% from 85%, both the sources said.
As of December-end, Shriram Finance held an 85% stake in Shriram Housing Finance, and San Francisco-headquartered Valiant Capital Management, L.P. had the remaining. Private equity investors are showing strong interest. The company is already in advanced talks with two-three investors.
