Shriram Housing Finance Ltd., a 100 per cent subsidiary of Shriram City Union Finance Ltd., is set for a change in equity structure in wake of a fund infusion proposal by Valiant Mauritius Partners FDI Ltd. Simultaneously, Shriram City, too, will inject funds into its subsidiary. Post-fund infusion, Valian will have an effective 22.75 per cent stake in Shriram Housing Finance.
“The proposed investment by Shriram City and Valiant shall happen in three tranches (including the initial contribution) over a period of 2 to 3 years based on the needs of the business,'' says a release.
Post-money infusion, the equity valuation of Shriram Housing is expected to be Rs.750 crore, excluding the possible accruals of profits in this period, the release adds.
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The deal envisages a cumulative investment of Rs.170.52 crore by Valiant and Rs.165.44 crore by Shriram City.
The infusion by Shriram City will be at Rs.10 a share and that of Valiant will be at Rs.35 a share in all tranches.
Valiant Capital began operations on August 1, 2008, after raising approximately $900 million from a collection of investors, including endowments, foundations, family offices and institutions. Valiant Capital Management, L.P. manages roughly $3.2 billion as of December 31, 2011.
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