Piramal buys 9.9 per cent in Shriram City from TPG Capital for 789 cr

MUMBAI: Piramal Enterprises has purchased 9.9 per cent stake in Shriram City Union Finance, the non-banking financial services arm of Shriram Group from private equity investor TPG Capital, the company announced on the stock exchanges on Wednesday.

The stake purchase for Rs 789.5 crore will help the Ajay Piramal Group take its stake up to 20 per cent in the company. The board of Shriram City Union approved an allotment of 65.8 lakh shares on a preferential basis at Rs 1,200 per share aggregating to Rs 789.6 crore to Piramal Enterprises late on Wednesday evening.

The PE fund has made three times returns on its investment in the company. Last year, Piramal purchased 10 per cet in Shriram Transport from TPG.

A fortnight ago, both the groups came together in a Rs 1,900-crore deal where Piramal will help the Chennai-based company to expand its insurance and other financing businesses to other markets in South Asia.