Sanlam Life Insurance Limited has provided a formal disclosure regarding transfer restrictions on its shares of Shriram Finance Limited. This follows a shareholders’ agreement executed with MUFG Bank Ltd. and other related entities. The arrangement imposes specific limitations on share transfers for a period of one year, commencing from April 8, 2026. This disclosure ensures transparency regarding the encumbrance status and the collaborative agreements involving the listed company’s shares.
Overview of Share Transfer Arrangement
Sanlam Life Insurance Limited has entered into a shareholders’ agreement (SHA) involving various parties, including MUFG Bank Ltd., Shriram Capital Private Limited, Shriram Ownership Trust, Shriwell Trust, Sanlam Emerging Markets (Mauritius) Limited, and Shriram Value Services Limited. Under this agreement, certain transfer restrictions have been placed on shares held in Shriram Finance Limited.
Key Terms of the Agreement
The restrictive covenants, initiated on April 8, 2026, prevent the transfer of shares for a period of one year. After this initial period, further restrictions apply regarding the transfer of shares to any identified ‘Restricted Person’ under the agreement. It is noted that these constraints will cease to be applicable if the shareholding of MUFG Bank Ltd. and its affiliates falls below 10% of the share capital on a fully diluted basis.
Impact and Encumbrance Details
The disclosure identifies 77,84,755 shares as being subject to these terms, representing 0.33% of the total share capital of Shriram Finance Limited. While these shares are categorized under encumbrance for the purpose of this disclosure, the arrangement relates to strategic transfer restrictions rather than debt instruments. Consequently, there is no financial asset cover or debt-related collateralization associated with this specific event.
Source: BSE
