Sanlam, South Africa’s largest asset manager, has made a strategic entry into the Indian market through an investment in Shriram Asset Management Company Limited (Shriram AMC), part of the Shriram Group.
In a statement, Shriram AMC said that it has completed a preferential allotment of 38.89 lakh equity shares to Sanlam Emerging Markets (Mauritius) Limited (SEMM), raising nearly $12.3 million (Rs 105 crore) in growth capital. With this allotment and the mandatory open offers, SEMM now holds a 23% direct stake in Shriram AMC and joins as a co-promoter alongside existing promoter Shriram Credit Company Limited (SCCL).
As a result, total promoter shareholding has increased from 62.55% to 71.17%, and Shriram AMC’s board will be reconstituted to include Sanlam’s representatives, the statement said.
“Leveraging its expertise in both quantitative and fundamental analysis, Sanlam will enhance the sophistication of Shriram AMC’s investment processes and help deliver relevant and differentiated investment solutions to the right customer segments. As a result, this strategic partnership will further strengthen the key pillars of our strategy covering the 3Ps of performance, products and placement,” said Kartik Jain, MD & CEO, Shriram AMC.
As part of a broader effort to strengthen its financial services portfolio, Shriram Group previously secured an investment from Mission1 Investments LLC, which acquired a 23% stake in Shriram AMC in 2022.
“We see India as a strategic growth market, and our partnership with Shriram AMC reflects our commitment to co-creating investment excellence, particularly in emerging markets. With over two decades of successful collaboration between the Shriram Group and Sanlam, this partnership builds on a long-standing legacy of trust, and a mutual vision to create impactful investments that benefit society,” said Carl Roothman, CEO of Sanlam Investments, Sanlam’s asset manager.
The Sanlam Group is a leading financial services group listed on the Johannesburg Stock Exchange (JSE), Namibian Stock Exchange and A2X Markets Limited. The group provides financial solutions to institutional clients and consumers across market segments, including life and general insurance, health, financial planning, retirement, investments, wealth management and credit. Established in 1918, Sanlam operates in 31 countries.
