Piramal Enterprises Set to Offload Entire 8.34% Stake in Shriram Finance via Block Deal: Insider Reports


Mumbai, June 20, 2023 - Piramal Enterprises, a leading Indian conglomerate, is reportedly preparing to sell its entire stake of 8.34 percent in Shriram Finance through a block deal, according to sources familiar with the matter. The news was reported by CNBC-Awaaz today.

Piramal Enterprises Set to Offload Entire 8.34% Stake in Shriram Finance via Block Deal

To execute the stake sale, Piramal Enterprises will need to divest approximately 3.1 crore shares it currently holds in the non-banking financial company. Sources indicate that the floor price for the block deal is expected to be set at Rs 1,483 per share. This represents a discount of around 5 percent compared to the current market price of Shriram Finance's stock, which stands at Rs 1,559.45 on the BSE.

Morgan Stanley, a prominent investment banking firm, will act as the sole broker for the block deal, as per the sources.

This move by Piramal Enterprises to exit Shriram Finance comes on the heels of private equity firm TPG's recent decision to divest its entire 2.65 percent stake in the NBFC. TPG, through its affiliate TPG India Investments II Inc, sold the shares in 18 tranches, resulting in proceeds of Rs 1,390 crore through open market transactions. Notable buyers included ICICI Prudential Life Insurance Company, Norges Bank, Societe Generale ODI, Nippon India Mutual Fund, Aditya Birla Sun Life MF, Kotak Mahindra Life Insurance Company, and Morgan Stanley Asia Singapore, among others.

In the quarter ending March 2023, Shriram Finance recorded a net profit of Rs 1,288 crore, marking an 18 percent increase compared to the previous year. The company's consolidated net interest income (NII) for the same period reached Rs 4,533 crore, reflecting a substantial 72 percent growth compared to the corresponding period of FY22.

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