Piramal Enterprises Ltd (PEL) said on Monday it has divested its entire 9.96 per cent stake in Shriram Transport Finance Company (STFC), the non-banking financial company of Chennai-based Shriram Group.
Reports said the stake sale is estimated to have fetched PEL Rs 2,305 crore.
Billionaire industrialist Ajay Piramal had picked up the stake for Rs 1,636 crore in 2013. A year later, he picked up 20 per cent stake in Shriram Capital for Rs 2,014 crore and became the Chairman in 2015. Piramal also acquired 10 per cent stake in Shriram City Union Finance for Rs 801 crore.
"The company has sold its entire direct investment of 9.96 per cent in the fully paid-up share capital of STFC to third party investors on the floor of the stock exchange," the company said in a statement.
PEL has been looking to exit from the Shriram group of companies. Reports say Piramal has started the exit process. After STFC, he may sell stake in other arms.
While Shriram Capital is an unlisted holding company, Shriram Transport specialises in financing second-hand trucks while Shriram City Union is into consumer lending.
Shriram Capital is the holding company of Shriram Group which has assets under management worth Rs 1 lakh crore. Reports say the estimated value of PEL's holding in Shriram Capital, Shriram Transport Finance and Shriram City Union Finance is about Rs 9,000 crore. (ANI)