Cyril Amarchand Mangaldas Advised Warburg Pincus On Its Investment In Shriram Housing Finance
Cyril Amarchand Mangaldas Advised Warburg Pincus on Its Investment in Shriram Housing Finance
Cyril Amarchand Mangaldas advised Warburg Pincus LLC on its investment in Shriram Housing Finance Limited (now to be known as Truhome Finance Limited). Warburg Pincus LLC ("WP") infused approximately INR 1200 crores in Shriram Housing Finance Limited ("SHFL") alongside another investor contributing around INR 25 crores. This investment was done through the primary issuance ("Primary Transaction").
Primary funding took place after the closing of the secondary acquisition by Warburg of 97.79% of the shareholding of SHFL on a fully diluted basis by acquiring the controlling stake from Shriram Finance Limited and Valiant Mauritius Partners FDI Limited ("Acquisition Completion Transaction"). The above investment is one of the largest bets Warburg has made in India.
WP has also executed a share purchase agreement on December 10, 2024, for acquisition of an additional minority stake in SHFL from 15 minority individual shareholders, along with a shareholders’ agreement dated December 10, 2024, to govern the inter-se rights and obligations of WP and other continuing minority shareholders of SHFL. The closing of the aforesaid share purchase agreement is proposed to be undertaken in January 2025.
SHFL is one of the largest affordable housing finance companies in India registered with the National Housing Bank. It provides retail loans including (i) housing loans for residential property, self-construction on already owned plot, and loans provided for upgradation and/or renovation of an existing house of the customer, and (ii) loan against property for business and personal use; and construction finance loans to builders for financing construction of housing projects. Shriram Housing Finance Limited will now be re-named to Truhome Finance Limited, upon receipt of new certificate of registration from Reserve Bank of India.
The primary transaction team at Cyril Amarchand Mangaldas was led by Partner Aditi Manchanda, with support from Senior Associate Naimi Kamdar and Associates Kaushik Raichura and Pauravi Kolhe. Acquisition Completion Transaction team was led by Aditi Manchanda, Partner; with support from Siddharth Vedula, Partner; Kushal Ramotre, Director - Corporate Transactions; Naimi Kamdar, Senior Associate; Dhrumil Sanghvi, Senior Associate; Anukriti Bhattad, Associate; Kaushik Raichura, Associate; and Pauravi Kolhe, Associate.
The Acquisition Completion Transaction team was led by Partner Aditi Manchanda, with support from Partner Siddharth Vedula, Director - Corporate Transactions Kushal Ramotre, Senior Associates Naimi Kamdar and Dhrumil Sanghvi, and Associates Anukriti Bhattad, Kaushik Raichura, and Pauravi Kolhe. Partner Gazal Rawal and Associate Havish Gotecha advised on regulatory aspects of the Acquisition Completion Transaction. Partner Arun Prabhu, Senior Associate Mahim Sharma, and Associate Anoushka Soni advised on intellectual property-related aspects in closing the Acquisition Completion Transaction.
Partner Abe Abraham, Principal Associate Anna Thomas, and Associates Sonam Ambastha and Rachita Shah advised on employment-related aspects in closing the Acquisition Completion Transaction. Partner Bharath Reddy and Associate Abhishek Jain advised on employee stock options- related aspects in closing the Acquisition Completion Transaction. Partner Subhojit Sadhu, Principal Associate Apoorv Jain, and Associate Sanyam Agarwal advised on financing-related aspects in closing the Acquisition Completion Transaction. Partner Indranath Bishnu and Principal Associate Niyati Dholakia advised on insurance- related aspects in closing the Acquisition Completion Transaction. Partner & Head of Competition Law Avaantika Kakkar, Partner Dhruv Rajain, and Associate Vanya Agarwal advised on competition law-related aspects in closing the Acquisition Completion Transaction.
Other parties to the transaction include: KPMG (acted as tax advisor for Mango Crest Investment Ltd) and PwC (acted as tax advisor for Valiant Mauritius Partners FDI Limited). The transaction was signed on 3rd December, 2024, and closed on 12th December, 2024.Cyril Amarchand Mangaldas Advised Warburg Pincus on Its Investment in Shriram Housing Finance Cyril Amarchand Mangaldas advised Warburg Pincus LLC on its investment in Shriram Housing Finance Limited (now to be known as Truhome Finance Limited). Warburg Pincus LLC ("WP") infused approximately INR 1200 crores in Shriram Housing Finance Limited ("SHFL") alongside another investor contributing around INR 25 crores. This investment was done through the primary issuance ("Primary Transaction").
Primary funding took place after the closing of the secondary acquisition by Warburg of 97.79% of the shareholding of SHFL on a fully diluted basis by acquiring the controlling stake from Shriram Finance Limited and Valiant Mauritius Partners FDI Limited ("Acquisition Completion Transaction"). The above investment is one of the largest bets Warburg has made in India.
WP has also executed a share purchase agreement on December 10, 2024, for acquisition of an additional minority stake in SHFL from 15 minority individual shareholders, along with a shareholders’ agreement dated December 10, 2024, to govern the inter-se rights and obligations of WP and other continuing minority shareholders of SHFL. The closing of the aforesaid share purchase agreement is proposed to be undertaken in January 2025.
SHFL is one of the largest affordable housing finance companies in India registered with the National Housing Bank. It provides retail loans including (i) housing loans for residential property, self-construction on already owned plot, and loans provided for upgradation and/or renovation of an existing house of the customer, and (ii) loan against property for business and personal use; and construction finance loans to builders for financing construction of housing projects. Shriram Housing Finance Limited will now be re-named to Truhome Finance Limited, upon receipt of new certificate of registration from Reserve Bank of India.
The primary transaction team at Cyril Amarchand Mangaldas was led by Partner Aditi Manchanda, with support from Senior Associate Naimi Kamdar and Associates Kaushik Raichura and Pauravi Kolhe. Acquisition Completion Transaction team was led by Aditi Manchanda, Partner; with support from Siddharth Vedula, Partner; Kushal Ramotre, Director - Corporate Transactions; Naimi Kamdar, Senior Associate; Dhrumil Sanghvi, Senior Associate; Anukriti Bhattad, Associate; Kaushik Raichura, Associate; and Pauravi Kolhe, Associate.
The Acquisition Completion Transaction team was led by Partner Aditi Manchanda, with support from Partner Siddharth Vedula, Director - Corporate Transactions Kushal Ramotre,Senior Associates Naimi Kamdar and Dhrumil Sanghvi, and Associates Anukriti Bhattad, Kaushik Raichura, and Pauravi Kolhe. Partner Gazal Rawal and Associate Havish Gotecha advised on regulatory aspects of the Acquisition Completion Transaction. Partner Arun Prabhu, Senior Associate Mahim Sharma, and Associate Anoushka Soni advised on intellectual property-related aspects in closing the Acquisition Completion Transaction. Partner Abe Abraham, Principal Associate Anna Thomas, and Associates Sonam Ambastha and Rachita Shah advised on employment-related aspects in closing the Acquisition Completion Transaction. Partner Bharath Reddy and Associate Abhishek Jain advised on employee stock options- related aspects in closing the Acquisition Completion Transaction. Partner Subhojit Sadhu, Principal Associate Apoorv Jain, and Associate Sanyam Agarwal advised on financing-related aspects in closing the Acquisition Completion Transaction. Partner Indranath Bishnu and Principal Associate Niyati Dholakia advised on insurance- related aspects in closing the Acquisition Completion Transaction.
Partner & Head of Competition Law Avaantika Kakkar, Partner Dhruv Rajain, and Associate Vanya Agarwal advised on competition law-related aspects in closing the Acquisition Completion Transaction.
Other parties to the transaction include: KPMG (acted as tax advisor for Mango Crest Investment Ltd) and PwC (acted as tax advisor for Valiant Mauritius Partners FDI Limited). The transaction was signed on 3rd December, 2024, and closed on 12th December, 2024.
