PE firm TPG puts Shriram Transport Finance stake sale on hold

MUMBAI: PE firm TPG has decided to put on hold its stake diversion in asset financing company Shriram Transport Finance ( STF), said two people familiar with the matter. The decision by TPG is due to the sliding valuation of Shriram Transport stock in the past six months.

TPG, which holds 20% stake in Shriram Transport, has been talking to a clutch of private equity players for the stake sale. It has valued its stake at around Rs 3,000 crore. PE firms such as General Atlantic, Actis, Citi Venture Capital and Temasek are interested in picking up TPG's stake.

"There is 10-15% price difference among TPG and the buyers," said the person who is closely associated with the deal, but not authorised to speak on the same. TPG bought Shriram Transport stake at Rs 123 a share four years ago. On Wednesday, Shriram Transport was trading at Rs 650, which was up 8.71%.

TPG did not wish to comment on this issue. Shriram Transport stock has lost 25% this year. In April, it had gone up to Rs 831, the highest in the last six months and came down to Rs 551 this August.