Piramal Enterprises Evaluating Plan To Sell Entire Stake In Shriram Capital
Piramal Enterprises Ltd. is planning to sell its entire 20 percent stake in Shriram Capital Ltd. to fund growth of its financial services business, the Ajay Piramal-led firm said on Monday. The company had earlier this month sold its entire 10 percent stake in Shriram Transport Finance Co. Ltd. for Rs 2,300 crore.
"As part of the long-term strategy of the company to fund growth of its financial services business, the company is evaluating the feasibility of sale of the entire (effective 20 percent) stake held by the company in Shriram Capital Ltd.," Piramal Enterprises said in a regulatory filing.
The proposed transaction would be subject to necessary approvals, including the approval of the company's board of directors at the appropriate stage, it added.
Piramal Enterprises did not disclose details, such as the expected valuation of its stake in Shriram Capital, potential buyer and timeline for closing the deal.
Piramal Enterprises had in 2013 initially picked up 9.9 percent stake Shriram Capital for Rs 1,636 crore and increased it to 20 percent the next year for a consideration of Rs 2,014 crore.
In April 2019, Piramal Enterprises announced its intention to exit from investments in Shriram Group companies and optimally redeploy capital for strategic growth in its own financial services business.