After exiting Shriram Transport Finance earlier this month, Piramal Enterprises has now proposed to sell its entire 20% stake in Shriram Capital.
Long-term strategy
“Following the sale of the entire shareholding held by the company in Shriram Transport Finance Company Limited (STFC), as a 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%) stake held by the company in Shriram Capital Limited,” Piramal said in a filing to exchanges.
“The proposed transaction would be subject to receipt of necessary approvals, including the approval of the board of directors of the company at the appropriate stage, and necessary disclosures will be made by the company at the relevant time, in accordance with applicable law,” the company said.
Piramal had acquired 20% stake in Shriram Capital — the financial services arm of the Shriram group — in 2014 for ₹2,014 crore.
Earlier this month, the company sold 9.96% stake in Shriram Transport Finance in the secondary market. Piramal Enterprises also has 10% stake in Shriram City Union, a retail-focussed non-banking finance firm.