UAE-based sovereign fund Mubadala Investment Company PJSC and Warburg Pincus LLC are in talks with Shriram Finance Limited (BSE:511218) to acquire a controlling stake in its subsidiary Shriram Housing Finance Limited (SHFL). Shriram Finance on April 30, 2024 confirmed it was looking to unlock value in the housing finance arm to secure growth capital. ?We are in discussions to secure growth capital for Shriram Finance.

Nothing has been finalised. Discussions are with multiple investors,? the company told Business Standard in response to a question on whether it is in talks with Mubadala and Warburg.

According to media reports, Bain Capital, LP was also in the race for the company. While Warburg did not comment on Business Standard queries, Mubadala did not respond. The deal is likely to be between INR 53.00 billion and INR 65.00 billion, according to the reports.

Shriram Finance owns 84.82% in SHFL, while private equity major Valiant Capital Management holds the majority of the remaining stake.