RBI Approves Shriram Finance’s 100% Stake Acquisition in SOIPL

Shriram Finance Limited has received approval from the Reserve Bank of India (RBI) to acquire a 100% equity stake in Shriram Overseas Investments Private Limited (SOIPL). The stake will be purchased from Shriram Investments Holdings Private Limited (SIHPL). The RBI’s clearance was conveyed through an official letter dated April 1, 2025, and disclosed by the company in a regulatory filing on the same day.

As of April 2 at 9:51 am, Shriram Finance share price was trading at ₹633.45, with a 6.46% dip over six months but a 29.33% gain over the past year.

Board-Level Appointments Cleared

As part of the approval, the RBI has also permitted the appointment of Umesh Revankar, Executive Vice Chairman of Shriram Finance, and Parag Sharma, Managing Director & CFO, as Directors on SOIPL’s board. These appointments are subject to conditions mentioned in the RBI’s letter.

The Board of Directors of Shriram Finance had approved the acquisition proposal earlier during a meeting held on April 26, 2024. The transaction earlier remained pending subject to regulatory clearance, which has now been granted.

Asset Growth

Shriram Finance expects to close the current financial year (FY25) with assets under management (AUM) exceeding ₹2.5 lakh crore, as per the reports. For FY26, the company projects its AUM to cross ₹3 lakh crore. According to the company’s leadership, this growth is based on an estimated 15% rise in credit demand.

Credit Growth 

The company has indicated that if India’s GDP grows at 6.5%, credit growth could reach 15% in FY26. Historically, the company notes that loan growth tends to be more than double the GDP growth rate.

Conclusion

The RBI’s approval marks the final regulatory step in Shriram Finance’s acquisition of SOIPL, along with changes in its board structure. The acquisition is now cleared to proceed, following earlier internal approvals and compliance formalities.

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