Warburg Pincus Invests INR 1,200 Crores In Shriram Housing Finance, Now Renamed Truhome Finance

Private equity firm Warburg Pincus LLC has made a significant investment of approximately Rs 1,200 crores in Shriram Housing Finance Limited (SHFL), now rebranded as Truhome Finance Limited. The investment, which included an additional INR 25 crores from another investor, was carried out through a primary issuance.

This primary funding followed the completion of Warburg Pincus's acquisition of a controlling 97.79 per cent stake in SHFL. The stake was acquired from Shriram Finance and Valiant Mauritius Partners FDI Limited as part of a secondary transaction. The total deal is one of Warburg Pincus's largest investments in India.

Warburg Pincus further entered into an agreement on December 10, 2024, to acquire an additional minority stake from 15 individual shareholders, with the transaction expected to close in January 2025.

Rebranding to Truhome Finance

SHFL, one of India’s largest affordable housing finance companies registered with the National Housing Bank, will now operate under the name Truhome Finance Limited upon receiving a new certificate of registration from the Reserve Bank of India. The company offers a broad range of loans, including housing loans, loans against property, and construction finance.

Legal Advisory by Cyril Amarchand Mangaldas

Cyril Amarchand Mangaldas (CAM) acted as the legal advisor for Warburg Pincus on the investment and acquisition transactions. The firm’s team provided comprehensive guidance on corporate, regulatory, intellectual property, employment, financing, insurance, and competition law aspects.

Key CAM partners involved included:

• Primary Transaction: Led by Partner Aditi Manchanda, supported by Senior Associate Naimi Kamdar and others.
• Acquisition Completion: Led by Aditi Manchanda with support from partners such as Siddharth Vedula, Arun Prabhu, and Avaantika Kakkar.
• Specialised Aspects: Expertise was provided on regulatory, intellectual property, and competition law by senior partners including Gazal Rawal and Avaantika Kakkar.

External advisors included KPMG as tax advisors for Mango Crest Investment and PwC for Valiant Mauritius Partners FDI Limited. The transaction was signed on December 3, 2024, and completed on December 12, 2024.