Chennai, Feb 2 (IANS): The Board of Directors of Shriram Asset Management Company Ltd (Shriram AMC) on Wednesday gave nod for a strategic stake holding for Mission1 Investments LLC (Mission1), the company said.

As per the decision, Mission1 will invest Rs.35 crore in Shriram AMC for 23 per cent stake.

As part of this transaction, Mission1 will subscribe to Compulsorily Convertible Debentures (CCDs) and Warrants, within 18 months at a conversion price of Rs 124.30/share, a premium of 24 per cent over February 1, 2022 closing price.

The promoters (Shriram Credit Company) will invest a further Rs 50 crore into the business by way of Compulsorily Convertible Preference Shares (CCPs) at the same conversion price of Rs 124.30/share.

The transaction is subject to SEBI approval.

Shriram's current ownership stake of 68.67 per cent of the paid-up capital will reduce to 62.55 per cent post conversion.

"The Shriram Group is fully committed to reinvigorating the mutual fund business. Towards this, we are bringing investors who are growth conscious and aligned with the Group's passion for responsible growth and impact at the bottom of the pyramid. Going forward, we will launch solutions leveraging our deep tech architecture, our connect with customers and a creative product-set focused on value creation for the common investor," said Akhilesh Singh, Vice Chairman, Shriram Credit Company.

Mission1 Investments LLC is an impact focused investment partnership with the dual mission of democratising access to investments and wealth creation, as well as generating strong financial returns for its partners.