Shriram Finance gets RBI nod to acquire 100% stake in SOIPL

Shriram Finance Limited, the flagship entity of the Shriram Group conglomerate, has secured approval from the Reserve Bank of India (RBI) to acquire a 100% equity stake in Shriram Overseas Investments Private Limited (SOIPL) from Shriram Investments Holdings Private Limited (SIHPL), the company announced in a regulatory filing on Tuesday.

The RBI’s nod, conveyed via a letter dated April 1, 2025, also includes approval for appointing Umesh Revankar, Executive Vice Chairman, and Parag Sharma, Managing Director & CFO, as Directors on SOIPL’s board.

The company had informed the stock exchanges last year that its Board of Directors approved the acquisition proposal during a meeting held on April 26, 2024, subject to the central bank’s clearance.

The RBI has also greenlit the appointment of Umesh Revankar, Executive Vice Chairman, and Parag Sharma, Managing Director & CFO of Shriram Finance, as directors on the board of SOIPL.

“We inform you that today i.e. April 1, 2025, the RBI...had conveyed its approval for acquisition of 100% shareholding in SOIPL by the Company and the appointment of Mr. Umesh Revankar, Executive Vice Chairman and Mr. Parag Sharma, Managing Director & CFO of the Company as Directors on the board of SOIPL, subject to compliance with conditions specified therein,” the filing said.

Shares of Shriram Finance closed at ₹637.85 apiece on the NSE, 2.77% down from the previous close.

The company is set to cross ₹3 lakh crore in assets under management (AUM) in the financial year 2026 (FY26), buoyed by an expected 15% loan growth, Executive Vice Chairman Umesh Revankar said.

"We expect 15 per cent credit growth for FY26 if the GDP grows at 6.5 per cent. Usually, loan growth is more than 2 times of the GDP. Higher the GDP growth, higher is the demand for loan," PTI quoted Revankar as saying.

Asked about the asset book target, he said, it should cross ₹3 lakh crore in FY26 and this financial year would close over ₹2.5 lakh crore.

Shriram Finance would end the current financial year with 18% credit growth although the guidance was 15%, he said, adding, the company has exceeded its target.