India's Shriram Finance up on plan to sell housing finance unit to Warburg Pincus

Aptus Value Housing Finance India

14/05/2024 05:15

** Shares of Shriram Finance  SHMF.NS  up as much as 5% at
2,417.85 rupees, last up 2.7%
    ** NBFC says it will sell its entire stake in unit Shriram
Housing Finance to Warburg Pincus in a deal valued at 46.30 bln
rupees ($554.5 mln)
    ** Valuation ~18% below Morgan Stanley's valuation of 57 bln
rupees, in-line with Axis Capital's expectation
    ** Sale could lead to a P&L gain of 23.5 bln rupees (3% of
market cap)- CLSA
    ** Adds Warburg's valuations lower than that of other
housing finance cos like Aavas Financiers  AVAS.NS , Home First
Finance  HOME.NS , Aptus Value Housing Finance India  APTS.NS  
    ** Analysts avg rating on SHMF "buy"; median PT 2,900 rupees
- LSEG data
    ** Stock up ~16% YTD vs 2% rise in Nifty 50 Index  .NSEI 
and 1% dip in Nifty Financial Services Index  .NIFTYFIN  


($1 = 83.5040 Indian rupees)

 (Reporting by Dimpal Gulwani in Bengaluru)
 ((dimpal.gulwani@thomsonreuters.com))