Bain Capital, Advent International and CVC Capital are among the private equity funds that are competing to buy Shriram Housing Finance Ltd (SHFL), an arm of Chennai-based non-banking finance company (NBFC) Shriram Finance, said people with knowledge of the matter.
These three, along with Warburg Pincus, have been shortlisted after non-binding bids were submitted by potential buyers in mid-December. They are currently engaged in conducting due diligence.
Parent Shriram Finance, which is mainly involved in commercial vehicle financing, owns 84.82% of SHFL, which focuses on affordable homes. San Francisco-based PE Valiant Capital Management owns most of the remaining stake.
The company expects a valuation of Rs 6,500 crore for the business, inclusive of a control premium, but the initial offers have been in the Rs 5,000-5,500 crore range, said the people cited above.
