CCI clears acquisition of Shriram Housing Finance by Warburg Pincus

New Delhi [India], August 21 (ANI): The Competition Commission of India (CCI) has approved the acquisition of Shriram Housing Finance Limited (SHFL) by Warburg Pincus through its affiliate Mango Crest Investment, the antitrust regulator said.

According to a statement released by CCI on Tuesday, Mango Crest Investment Ltd is undertaking investment holding activities in Shriram Housing Finance.

“The principal business activity of the acquirer is undertaking investment holding activities,” the CCI said.

Mango Crest Investment Ltd. is a company incorporated in the Republic of Mauritius.

Shriram Housing Finance Limited (SHFL) is a housing finance company registered with the National Housing Bank.

The Non-Banking Financial Company (NBFC) Shriram Finance Limited (SFL) in May this year announced its plans to sell its housing finance subsidiary arm to private equity player Warburg Pincus.

The proposed transaction amount of the deal was Rs 4630 crores for equity and convertible instruments of SHFL.

SFL holds a controlling stake in SHFL while the private equity firm Valiant Partners L.P (Valiant) holds the remaining stakes in the housing arm of the company.

SHFL is a housing finance organisation registered with the National Housing Bank (NHB). The company is a part of the Shriram Group, with a legacy of almost five decades.

As a conglomerate, the foundation of Shriram Group was laid by industry veterans Ramamurthy Thyagarajan, AVS Raja and T Jayaraman.

Starting as a chit fund business, the group achieved massive success and diversified into many verticals like Commercial Vehicle Financing, Consumer and Enterprise Finance, Retail Stock Broking and Distribution of investment and insurance products, as per the information provided by the company on its website.

On 4th August 2011, the company received its Certificate of Registration from the National Housing Bank (NHB) as required under Section 29A of the National Housing Bank Act, 1987.

Separately, the CCI approved the acquisition of Apollo Healthco by Advent (through Rasmeli, a business entity incorporated in Cyprus).

After the acquisition, Rasmeli will make a minority investment in AHL over two tranches, gaining certain rights in AHL.