As many as 80 lakh shares of 2.1 percent equity of Shriram Finance changed hands in a large trade deal on Friday. Shares of Shriram Finance are trading at Rs 1275, down 2..7 percent from the previous close on the BSE.
People in the know told CNBC-TV18 yesterday that private equity fund APAX arm Dynasty Acquisition is likely to sell up to 1.73 crore shares or 4.63 percent equity in Shriram Finance at a discount of up to 6 percent. APAX is looking to exit its entire stake in the company in the deal valued at Rs 2,250 crore, including the green shoe option, the sources added further.
In 2015, Apax acquired stake in Shriram City from TPG. Post the merger of Shriram City and Shriram Transport, APAX held 4.63 percent stake in Shriram Finance, the merged entity.
Shriram Transport Finance posted a 38 percent year-on-year growth in net profit at Rs 1,066.87 crore in the September quarter. Its total income rose 14 percent to Rs 5,351.28 crore and net interest income rose by 23 percent to Rs 2,694 crore.
In December Shriram Group announced the launch of the operations of Shriram Finance Ltd. after the merger of the group entities. Shriram Finance Ltd. was created after the merger of Shriram Transport Finance, Shriram City Union Finance, and ex-holding firm Shriram Capital.
The company also announced in December that it has secured $100 million long-term funding from Asian Development Bank (ADB). The five-year External Commercial Borrowing (ECB) is under Shriram Finance's social finance framework.
The funds raised from ADB will enable Shriram Finance, a part of the Shriram Group, to provide credit towards the purchase of new and used vehicles throughout India.
Proceeds from ADB will be utilised to finance commercial purposes for BS VI-compliant vehicles as well as electric vehicles, specifically to finance women entrepreneurs.
In addition to the ADB loan, the retail NBFC has raised $250 million from US Development Finance Corporation and $475 million through a 144A Bond from the international market this year.
Shriram Finance Ltd. has become the largest retail non-banking finance company in the country. The company serves over 67 lakh customers across India.
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