Piramal Enterprises sells stake in Shriram Transport

Piramal Enterprises has sold its entire holding in Shriram Transport Finance to third-party investors. Piramal had a direct investment of 9.96 per cent in the fully paid-up share capital of Shriram Transport.

Shriram Group is a conglomerate, which engages in the lending business through Shriram Transport Finance (Commercial Vehicle Finance) and Shriram City Union Finance (Consumer and MSME Finance). The Group has also entered into metallurgy by setting up a unit in Odisha. Piramal Enterprises is a company of Piramal Group having active business operations in healthcare, life sciences, information management and financial services.

Originally Piramal owned 20 per cent in Shriram Capital and 10 per cent each in Shriram Transport Finance and Shriram City Union. Post the failed attempt of Shriram Group’s merger with IDFC Bank, Piramal had plans to exit from all three of these businesses. As of March 2019, Piramal Enterprises had held around Rs. 2.26 crore shares amounting to 9.96 per cent stake in Shriram Transport Finance.

Reacting to this on Monday, the stock of Shriram Transport Finance Company Limited was trading at Rs. 1,017 per share, a decrease of 5.97 per cent or Rs. 64.55 than its previous closing price. The stock of Piramal Enterprises was at Rs. 2,021, a decrease of 2.29 per cent or Rs. 47.45 than its previous close.