Shriram Capital on Tuesday said that going forward the Shriram Group enterprises will be managed by the Shriram Ownership Trust (SOT), which will actively work with Sanlam.
“Leadership, vision and direction to the Shriram Group Companies (SGC) will be provided by SOT, mainly through the respective SGCs boards. SOT will continue to actively engage with Sanlam, (who are also our partners in Shriram Capital and the two insurance businesses) and other stakeholders to drive the businesses forward,” said DV Ravi, Managing Director-Shriram Capital and Managing Trustee, SOT. His comments come after reports of the potential exit of Piramal Enterprises and TPG from the Shriram Group.
Ravi also said that Shriram Capital will evaluate various restructuring initiatives like rationalisation of holding structure including consolidation, acquisition, restructuring and combinations between the various entities in the SGCs in the form of mergers or demergers.
“These initiatives will help optimise cost, drive synergies, cut out intermediate layers with a view to enhance value to the various stakeholders,” he said, adding that any decision, if taken by the Boards of the respective companies will be brought to the respective stakeholders for consideration and will also be suitably disclosed as per applicable law.
In a statement, Shriram Capital also said that TPG and PEL have been valuable partners and investors of the group.
“Shriram Capital and some of its group companies have been receiving queries from the investors, investment bankers and analysts on the potential exit ...and possible restructuring initiatives,” it said. Both PEL and TPG are evaluating the feasibility of selling their respective shareholding in SCL, it further said.
While PEL’s evaluation of exit from Shriram Capital is a part of its long-term strategy to fund growth of its financial services business, TPG’s evaluation of an exit is consistent with its investment review practices, and takes into account, among other factors, the period of time TPG has been invested in Shriram Capital, it added.