Piramal plans to sell stake in Shriram Capital; shares slip 3%

NEW DELHI: Shares of Piramal Enterprises declined over 3 per cent in Tuesday's session after it said it is planning to sell its entire holding of around 20 per cent stake in Shriram Capital.

Days after exiting Shriram Transport Finance, Piramal Enterprises now exploring selling entire stake in Shriram Capital.

"As part of the long-term strategy of the company to fund the growth of its financial services business, the company is evaluating the feasibility of sale of the entire (effective 20 per cent) stake held by the company in Shriram Capital," Piramal Enterprises said in a regulatory filing.


The proposed transaction would be subject to receipt of necessary approvals, including the approval of the company's board of directors at the appropriate stage, it added.

On June 17, 2019, Piramal Enterprises sold its entire stake in Shriram Transport Finance Company for about Rs 2,305 crore to institutional investors in a block deal six years after it had bought the shares.

SBI Mutual fund, Birla Mutual Fund, HDFC MF, Teachers Insurance and Annuity Association of America-College Retirement Equities Fund and FMR are among the buyers in Shriram Transport Finance.

Shares of Piramal Enterprises closed 3.01 per cent down at Rs 1,887 on BSE.