Shriram Cap may sell 20% stake to S. Africa's Sanlam

M. Ramesh S. Bridget Leena Chennai | Updated on November 12, 2017


The Sanlam group of South Africa is likely to pick up 20 per cent stake in Shriram Capital, the Shriram group's holding company for all its financial services ventures, it is reliably learnt.

Shriram and Sanlam know each other well; the South African outfit is a partner with the Chennai-based group in both the insurance ventures (life and non-life).

While the Shriram group has refused to confirm this development, saying that it would not comment on ?market speculation?, sources in the know have told Business Line that the proposal, which is awaiting regulatory clearance, will cement ties between the two entities. Sources in the group believe that there is a lot that Sanlam and Shriram can learn from each other.

Shriram Life, which has a strong presence in the South, intends taking its business pan-India for which it wants to tap the century-old Sanlam's expertise.

At a press conference in June last year, the Shriram group Chairman, Mr R. Thyagarajan, spoke of ?Sanlamisation? of Shriram.

Besides, the Shriram group has ambitions abroad ? Thailand and Indonesia could be the first forays ? where again Sanlam's resources would be useful. If the deal happens, Sanlam would be the second foreign investor into Shriram Capital, which holds the group's shares also in the two listed NBFCs ? Shriram Transport Finance and Shriram City Union Finance.

Last year, PE fund TPG (formerly Texas Pacific Group) had begun the process to pick up 20 per cent in Shriram Capital.

The stake-take is understood to have been pared to 15 per cent and the deal is said to be in the final stages.

At that time, Shriram Capital was enterprise-valued at Rs 4,000 crore.

Published on January 05, 2011

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like