Piramal Finance Ltd has decided to exit the life insurance business by selling its entire 14.72 per cent stake in Shriram Life Insurance Company to Sanlam Emerging Markets (Mauritius) Ltd for ₹600 crore. The transaction marks a clear strategic shift by Piramal Finance to monetise non-core assets and concentrate on its core lending and financial services operations.
The deal has been signed through a share purchase agreement and is expected to be completed by the quarter ending March 31, 2026, subject to approvals from regulators, including the Insurance Regulatory and Development Authority of India (IRDAI) and other statutory bodies.
Shriram Life Insurance is a joint venture between the Shriram Group and Sanlam, the South Africa-based financial services major. Prior to the transaction, Shriram Capital was the largest shareholder with about 47 per cent stake, while Sanlam Emerging Markets held nearly 23 per cent. With the acquisition of Piramal Finance’s holding, Sanlam’s stake in Shriram Life will increase to around 38 per cent, strengthening its position as a long-term partner in the venture.
Piramal Finance said the divestment is in line with its ongoing efforts to streamline its portfolio and redeploy capital into businesses that offer higher strategic and financial returns. The company has been steadily reducing exposure to investments that are not directly aligned with its primary focus areas.
The insurance venture contributed only marginally to Piramal Finance’s earnings. In the last financial year, dividend income from Shriram Life Insurance accounted for a very small fraction of the company’s overall revenue, reinforcing the decision to exit the business.
For Sanlam, the transaction underlines its confidence in India’s fast-growing life insurance market. With an increased stake, the group is expected to play a more active role in supporting Shriram Life’s growth plans, especially in semi-urban and rural markets where the insurer has a strong distribution network and customer base.
The deal also comes amid rising foreign interest in India’s insurance sector, following regulatory reforms that allow higher foreign direct investment. Analysts say such transactions reflect a broader trend of consolidation and capital realignment in financial services, as companies sharpen their strategic priorities.
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