Piramal Enterprises Sells Entire 8.34% Stake in Shriram Finance in Bulk Deal
Moneylife Digital Team 21 June 2023
The Ajay Piramal-led Piramal Enterprises Ltd has sold its entire 8.34% stake in Shriram Finance Limited to third-party investors in a bulk deal, reportedly priced at Rs1,483 per share. This follows a day after US private equity TPG sold its entire 2.65% stake in Shriram Finance. 
 
In a regulatory filing, Piramal Enterprises says, "...the company has sold its entire direct investment of 8.34% in the fully paid-up share capital of Shriram Finance to third party investors, on the floor of the stock exchange."
 
Promoter and promoter group, including Shriram Capital Pvt Ltd, Shriram Value Services Ltd, and Shriram Ownership Trust own 23.50% of Shriram Finance. Sanlam Life Insurance Ltd, a promoter group entity, owns a 2.01% stake in the company as of March 2023. 
 
When the Shriram group was restructured, Piramal Enterprises received an 8.34% stake in Shriram Finance and 20% each in Shriram Gi Holdings, Shriram Li Holdings and Shriram Investment Holdings. 
 
In 2013, Piramal acquired a 10% stake in Shriram Transport Finance for Rs1,636 crore and, a year later, acquired a 20% stake in Shriram Capital for Rs2,014 crore. In the same year, it also bought a 10% stake in Shriram City Union Finance for Rs790 crore.
 
Shriram Finance was created after the merger of Shriram Transport Finance Co, the largest financier of commercial vehicles, and Shriram City Union Finance, the largest financier of two-wheelers and a pioneer in financing to micro, small, and medium enterprises (MSME).
 
At 2.06pm Wednesday, Piramal Enterprises was trading 13.82% higher at Rs954.55 while Shriram Finance was 11.23% up at Rs1734.50 on the BSE. The 30-share Sensex was marginally higher at 63,499 points.
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