Indian non-banking financial company Shriram Finance Limited on Monday said, in its board meeting, that it will sell its entire stake in Shriram Housing Finance Limited to private equity (PE) giant Warburg Pincus.

The transaction for Warburg Pincus will be routed through its affiliate Mango Crest Investment Ltd.

The proposed transaction, which includes both equity and convertible instruments and is subject to regulatory approvals, has pegged the valuation of Shriram Housing Finance at Rs 4,630 crore ($554.59 million).

Shriram Finance, which is one of India’s biggest retail NBFCs, offers credit solutions for commercial vehicles, two-wheeler loans, car loans, home loans, gold loans, and personal and small business loans.

It is a part of the 49-year-old Shriram Group, an Indian conglomerate headquartered in Chennai.

Shriram Finance held an 84.82% stake in Shriram Housing Finance, while the remaining 14.94%  was owned by private equity major Valiant Capital Management.

Earlier, talks were rife about BPEA EQT being in talks to pick up a minority stake in the housing finance venture, but the talks did not fructify.

As a part of the current transaction, Valiant will also sell its equity stake to Warburg Pincus.