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NBFC stock jumps after company sells its housing finance subsidiary for ₹3,929 Cr to Warburg Pincus

Major financial group sold its 84.44% stake in its housing finance subsidiary to Warburg Pincus for ₹3,929 crore, aiming to accelerate growth and expand operations under new ownership.
NBFC Stock Soars as Housing Finance Unit Sold to Warburg Pincus for ₹3,929 Crore!
NBFC Stock Soars as Housing Finance Unit Sold to Warburg Pincus for ₹3,929 Crore!

Introduction:

Major financial group announced the successful sale of its 84.44% stake in its housing finance subsidiary to Warburg Pincus for ₹3,929 crore, marking a significant milestone in its strategic growth and expansion plans.

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Share price movement of Shriram Finance:

On December 12, 2024, Shriram Finance Ltd opened at ₹3,248.60, slightly up from its previous close of ₹3,247.45. The stock reached a high of ₹3,263.25 (0.49%) and a low of ₹3,222.10. By 3:30 PM, it traded at ₹3,245.85, a 0.05% decrease, with a market cap of ₹1,22,054.75 crore.

Shriram Finance sells stake:

Shriram Finance Limited announced the successful sale of its 84.44% stake in Shriram Housing Finance to Warburg Pincus for ₹3,929 crore. The transaction has been completed with all necessary regulatory approvals.

The sale of Shriram Housing Finance, a key player in affordable housing finance, is expected to strengthen its position under Warburg Pincus’ ownership. The deal is set to accelerate the company’s growth, focusing on expanding operations and enhancing financial inclusion.

Warburg Pincus, a global growth investor, will now guide Shriram Housing Finance as it continues to cater to the housing needs of underserved segments. This move marks a significant milestone in Shriram Finance’s strategic transition.

Recent news on Shriram Finance:

As of December 04, 2024, Shriram Finance Ltd. launched its new campaign, “#TogetherWeSoar,” featuring cricket legend Rahul Dravid as brand ambassador. The campaign emphasizes the power of partnerships in overcoming challenges and achieving success.

Stock performance of Shriram Finance for Period of 1 week, 6 months and 1 year:

Shriram Finance Ltd has shown strong performance with a 3.90% return over the past week and 18.9% over six months. The company has posted an impressive 62.8% return over the past year, reflecting consistent growth.

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Shareholding pattern of Shriram Finance:

All values in %Sep 2024Jun 2024Mar 2024
Promoter25.40%25.40%25.40%
FII53.30%54.30%53.90%
DII16.20%15.20%15.70%
Public5.10%5.10%5.00%
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About Shriram Finance:

Shriram Transport Finance Company Ltd (NSE: SHRIRAMFIN) is a leading NBFC under the Shriram Group, specializing in financing commercial vehicles, including pre-owned trucks. It operates through 3149 branches and has a strong presence in rural financing.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.

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