Piramal Enterprises has decided to sell its entire stake in Shriram Investment Holdings to Shriram Ownership Trust for a consideration of ₹1,440 crore, the firm said in an exchange filing on January 27.
The firm has entered into a share purchase agreement to sell its entire direct investment of 20% of the fully paid-up equity share capital in Shriram Investment Holdings. The transaction is subject to receipt of requisite regulatory approvals by Shriram Ownership Trust, the promoter of Shriram Capital Pvt., the holding company of Shriram Group.
“This transaction is aligned with our focus on monetising non-core assets. The proceeds from the transaction will further strengthen our balance sheet,” Piramal Enterprises said.
The divestment is expected to be completed prior to March 31, 2024, according to the filing. Piramal Enterprises also pointed out that the contribution of Shriram Investment Holdings in its revenue for the year ended March 31, 2023 was nil.
Piramal Enterprises’ latest divestment in the Shriram Investment Holdings is its second Shriram Group. In June last year, the firm had sold its entire 8.3% stake it held in Shriram Finance through multiple block deals worth ₹4,824 crore.
It must be noted that Piramal Enterprises had invested ₹2,014 crore for a 20% stake in Shriram Capital in 2014, ₹1,636 crore for a 9.9% stake in Shriram Transport Finance Company (now Shriram Finance) in 2013 and ₹790 crore for a 10% stake in Shriram City Union Finance in 2014.
Shriram Group, of which Shriram Investment Holdings is a part, offers financial products in commercial vehicle financing, retail financing, chit funds, housing finance, life insurance, general insurance, stockbroking, distribution of financial products, and wealth advisory through its entities.
