South Africa's Sanlam invests ₹105 cr in Shriram AMC for 23% stake

Sanlam becomes co-promoter of Shriram AMC with ₹105 crore for 23% stake, raising total promoter holding to over 71%; Shriram AMC shares rise 10% on the news

South Africa’s largest asset manager, Sanlam, on Tuesday entered India’s mutual fund (MF) market with a strategic investment in Shriram Asset Management Company (Shriram AMC).

 

Sanlam has picked up a 23 per cent stake in Shriram AMC through an investment of ₹105 crore and is now a co-promoter of the company.

 

“Shriram AMC has completed a preferential allotment of 3.89 million equity shares to Sanlam Emerging Markets Mauritius (SEMM). With this allotment and the mandatory open offers, SEMM now holds a 23 per cent direct stake and joins as a co-promoter,” the AMC said. 

 

 

Shriram AMC stated that the proceeds will primarily be used to support working capital requirements and business expansion. “We will strengthen our core areas—investment management, product development and talent acquisition,” it said.

 

In 2022, Mission1 Investments acquired a 23 per cent stake in Shriram AMC. It currently holds 17.7 per cent in the company.

 

Post the latest deal, total promoter shareholding has increased from 62.5 per cent to 71.2 per cent. The Shriram Group holds 48.17 per cent.

 

The AMC manages close to ₹1,000 crore through its MF schemes.

 

Shriram AMC’s stock gained over 10 per cent to end at ₹489.4, valuing the asset manager at ₹637 crore.