Shriram Group to infuse Rs 300 crore in non financial business

CHENNAI: Chennai-based Shriram Group plans to infuse about Rs 300 crore in its green energy company Orient Green Power and Shriram EPC, both listed entities.

According to a disclosure on the stock exchanges, Shriram Industrial Holdings, a holding company for Shriram Group's non-financial services business, will infuse Rs 150 crore in Orient Green Power through an preferential allotment of 10 crore shares. It will also acquire indirect stakes by buying out other subsidiaries which hold stakes in Orient Green Power from Shriram EPC for Rs 148.20 core.

The complex deal will force the group to give an open offer to the public shareholders of Orient Green Power. The open offer would make the group further shell out Rs 221.55 crore.

Major public shareholders in Orient Green Power include Life Insurance Corporation of India with 4.24% stake, private equity firms Olympus India Holdings Ltd with 2.86% and Bessemer India Capital Partners fund with 1.16% stake.

Orient Green Power shares are down 72% from its IPO list price of Rs 45.70.