The U.S.-based private equity firm realises Rs.1,600 crore

Private equity giant TPG Capital, on Thursday, offloaded nearly 10 per cent stake in commercial vehicle financier Shriram Transport Finance Company in open market deals worth over Rs.1,600 crore, one of the biggest PE transactions in recent months.

TPG Capital, which held its stake in Shriram Transport Finance Company through Newbridge India Investment, sold 2.26 crore shares (amounting to 9.98 per cent stake) in the firm, as per data available with the stock exchanges. The shares were sold on an average price of Rs.715.15, valuing the deal size at Rs.1,612 crore, data showed.

As of December quarter, TPG Capital, through Newbridge, held 20.28 per cent stake in Shriram Transport Finance.

Earlier this month, private equity firm Apax Partners had offloaded 63.85 lakh shares of Apollo Hospitals Enterprise for about Rs.530 crore.

In 2005, TPG had reportedly invested $100 million for 49 per cent in Shriran Holding (Madras) in which the Chennai-based Shriram Group holds the remaining 51 per cent. Meanwhile, three entities — Centaura Investments (Mauritius) Pte Ltd, Sanlam Life Insurance and Swiss Finance Corp (Mauritius) Ltd —collectively picked up 1.35 crore shares of Shriram Transport Finance for Rs.967 crore. Individually, Centaura Investments purchased 37.70 lakh shares, Sanlam Life Insurance bought 84 lakh shares and Swiss Finance Corp picked up 13.52 lakh scrips in the non-banking finance firm.

Shares of Shriram Transport Finance plunged by 7.72 per cent to settle at Rs.699.25 on the Bombay Stock Exchange.

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