During Tuesday’s trading session, the shares of a part of the Shriram Group offering a mixed product line comprising hybrid, equity, and debt funds, surged nearly 11.3 percent on BSE, after entering into a 20-year partnership with Sanlam, South Africa’s largest asset manager.
With a market cap of Rs. 636.5 crores, at 01:44 p.m., the shares of Shriram Asset Management Company Limited were trading in the green at Rs. 489, up by around 10.2 percent, as compared to its previous closing price of Rs. 443.7. The stock has delivered positive returns of around 76 percent in one year, and has gained by over 1 percent in the last one month.
What’s the News
According to the latest regulatory filings with the BSE, Shriram Asset Management Company Limited (Shriram AMC), a part of the Shriram Group, has entered into a strategic partnership with Sanlam, South Africa’s largest asset manager with $80 billion in AUM.
As part of the partnership, Shriram AMC has completed a preferential allotment of 38.89 lakh equity shares to Sanlam Emerging Markets (Mauritius) Limited (SEMM), raising Rs. 105 crores in growth capital. This equity infusion is to boost ‘quantamental’ investing, expand product innovation, and attract top talent in India’s mutual fund space.
Following this allotment and the completion of the mandatory open offers, SEMM now holds a 23 percent direct stake in Shriram AMC, becoming a co-promoter alongside the existing promoter, Shriram Credit Company Limited (SCCL).
As a result, the total promoter holding in Shriram AMC has increased from 62.55 percent to 71.17 percent, and its Board will be reconstituted to include representatives from Sanlam.
Earlier in 2022, Shriram Group welcomed Mission1 Investments LLC as a strategic investor, which acquired a 23 percent stake in Shriram AMC. The latest partnership with Sanlam underscores Shriram Group’s ongoing efforts to evolve its AMC business into a future-ready, inclusive asset management platform geared towards long-term value creation.
Financial Performance
Shriram AMC reported a decline in revenue from operations, experiencing a year-on-year decrease of nearly 44 percent, falling from Rs. 2 crores in Q4 FY24 to Rs. 1.11 crores in Q4 FY25. Similarly, during the same period, the company’s net loss widened by around 117 percent YoY, from Rs. 2.4 crores to Rs. 5.2 crores.
About the company
Incorporated in 1994, Shriram Asset Management Company Limited, part of the Shriram Group, acts as the Asset Management Company of Shriram Mutual Fund, and offers a mixed product line comprising hybrid, equity, and debt funds.
Written by Shivani Singh
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