Piramal Finance on Friday announced that it will sell its entire 14.72 percent stake in Shriram Life Insurance Company Limited to Sanlam Emerging Markets (Mauritius) Ltd for ₹600 crore. The transaction marks Piramal Finance’s exit from the life insurance joint venture.
Buyer Profile
Sanlam Emerging Markets (Mauritius) Ltd is a wholly owned subsidiary of Sanlam Emerging Markets Pty and is part of the Sanlam Group, a pan-African financial services group headquartered in South Africa. Sanlam has an existing presence in Shriram Life Insurance as a joint promoter.
Regulatory Approvals and Timeline
The lender said the transaction is expected to close in the quarter ending March 31, 2026. Completion of the deal is subject to receipt of regulatory approvals, including clearance from the Insurance Regulatory and Development Authority of India (Irdai), along with other customary approvals.
Financial Impact for Piramal Finance
Piramal Finance stated that the proceeds from the stake sale will be used to strengthen its balance sheet. For the financial year ended March 31, 2025, Shriram Life Insurance contributed ₹12.68 crore to Piramal Finance’s revenue in the form of dividend income, accounting for around 0.12 percent of the lender’s total revenue.
Strategic Rationale
The company said the monetisation of its holding in Shriram Life Insurance aligns with its strategy of exiting non-core assets. Piramal Finance added that it will continue to evaluate opportunities to monetise other residual non-core investments as part of its capital allocation approach.
Shareholding Structure Post-Transaction
Shriram Life Insurance is jointly promoted by the Shriram Group, through Shriram Capital, and the Sanlam Group. Prior to the transaction, Shriram Capital held approximately 47 percent of the company, while Sanlam owned about 23 percent. Following the acquisition of Piramal Finance’s stake, Sanlam Group’s shareholding will increase to 37.72 percent, strengthening its position in the life insurer.
The transaction reflects continued consolidation among promoters in India’s life insurance sector, as financial groups reassess capital deployment and long-term strategic priorities.
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