Piramal Enterprises Ltd. (PEL) has sold its entire stake of 9.96% in Shriram Transport Finance Company (STFC) in the secondary market on Monday.
While the exact price at which Piramal sold the shares is not known, it may have sold them at between ₹1,000-1,015 per share, a 40% gain in six years. STFC shares ended the day at ₹1,018, down 5.88% from its previous close.
PEL bought STFC shares in 2013, and in 2014 it acquired a 20% stake in Shriram Capital — the financial services arm of the Shriram Group — for ₹2,014 crore. Ajay Piramal became the chairman of Shriram Capital. In the same year, it acquired 10% stake in Shriram City Union, a retail focussed NBFC of the Shriram group.
“In April this year, PEL had announced its intention to exit from its investments in Shriram and optimally redeploy the capital in a market that is clearly seeing consolidation take place,” a statement from PEL said.
“This divestment is in line with PEL’s stated intent and one of the steps in a broader strategy to leverage opportunities for strategic growth in its own financial services business,” it added.
Piramal and Shriram Group also joined hands to acquire stake in erstwhile IDFC Bank but the deal did not go through due to valuation hurdles.
