Shares of Shriram Finance rose more than 1% on the morning of March 16 after a report that the company sought to cut a 15% stake in its housing finance unit at a valuation of $121.35 million.

News agency Reuters said the equity infusion could reach $121.46 million. After evaluating all offers, the company could decide on the deal by the end of March.

Media reports said that after the equity injection, Shriram Finance’s stake in Shriram Housing Finance, which provides loans mainly in the affordable housing sector, will drop from 85% to around 70%.

Shriram Finance held an 85% stake in Shriram Housing Finance as of end-December, while San Francisco-based Valiant Capital Management, LP held the remainder. According to Reuters, the company is already in advanced talks with two or three investors.

According to media reports, Shriram Housing Finance may delay its public listing plans by at least four to five years if the deal goes through.

The housing financier also plans to raise Rs 4,000 crore in debt in the next financial year starting in April, assuming the stake sale is concluded, media reports said.

Shriram Finance shares quoted Rs 1,247 on the BSE at 11:35 am, up Rs 17.80, or 1.45%. It touched an intraday high of Rs 1,250.15 and an intraday low of Rs 1,223.45.