Shriram Group's Flagship Finance Company Acquires 100 Per cent Stake In SOIPL For Rs 50.12 Crore, Secures RBI Nod To Launch Primary Dealership Business
The company has delivered a strong one-year return of 27.42 per cent and an impressive three-year return of 159.33 per cent, making it a notable performer in the mid-cap financial space.
Shriram Finance Limited has announced the successful acquisition of a 100 per cent equity stake in Shriram Overseas Investments Private Limited (SOIPL), marking a key strategic move to expand its global financial footprint. The deal, valued at Rs 50.12 crore, involved the purchase of 31,66,500 equity shares from Shriram Investments Holdings Private Limited. With this acquisition, SOIPL becomes a wholly-owned subsidiary of Shriram Finance, laying the foundation for new international ventures and potential regulatory growth opportunities.
SOIPL operates as a non-banking financial company (NBFC) engaged in investment activities. It currently holds a subsidiary, Bharath Investments Pte. Limited in Singapore, and an associate, Armour Insurance Services WLL in Bahrain. However, as part of the acquisition strategy, SOIPL is in the process of divesting its stake in both the Singapore and Bahrain entities. The acquisition is aimed at facilitating the launch of a Primary Dealership Business under SOIPL, pending regulatory approvals. Notably, the Reserve Bank of India has already granted approval for the change in control, easing the path for future business developments.
DSIJ’s 'multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, download the service details here.
Shriram Finance, formerly known as Shriram Transport Finance Company Ltd, is a leading name in the commercial vehicle financing space. As a deposit-taking NBFC under the SHRIRAM Group, the company provides financing solutions for new and pre-owned trucks. It operates through a strong network of 1,758 branches and 831 rural centers, partnering with approximately 500 private financiers. This extensive reach enables it to serve a broad and diverse customer base, mainly within the commercial transportation segment. The company’s long-standing focus on commercial vehicle finance has helped it maintain a robust market presence in the NBFC sector.
As of May 09, 2025, Shriram Finance’s stock is trading at Rs 601.85, with a 52-week high of Rs 725.13 and a 52-week low of Rs 451.7. The company has delivered a strong one-year return of 27.42 per cent and an impressive three-year return of 159.33 per cent, making it a notable performer in the Mid-Cap financial space. With a market capitalisation of Rs 115,362 crore and a price-to-earnings (PE) ratio of 12.24, the company stands on solid financial ground.
Investors will closely watch how this acquisition contributes to the company’s long-term growth, especially in light of its plans to enter the Primary Dealership Business. While the deal does not immediately impact Quarterly Results or dividend declarations, it strengthens Shriram Finance's strategic position both domestically and internationally.
Disclaimer: The article is for informational purposes only and not investment advice.