Last week, Piramal had divested its entire stake in asset financing firm Shriram Transport Finance Company for approximately Rs 2,305 crore.
Days after exiting commercial vehicle financier Shriram Transport Finance Company, Ajay Piramal-led diversified conglomerate Piramal Enterprises is now exploring the sale of its entire stake in Shriram Capital to raise growth capital for its financial services vertical.
In a disclosure to the stock exchanges on June 24, the firm said, “ As a part of the long term strategy of the company to fund growth of its financial services business, the company is evaluating the feasibility of sale of the entire (effective 20 percent) stake held by the company in Shriram Capital Limited.”
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.
Details on expected valuations, potential suitors and deal completion timeframe were not shared. Piramal Enterprises had picked up a 20 percent stake in Shriram Capital for Rs 2,014 crores in April 2014. Shriram Capital is the unlisted holding company for the financial service entities of the Chennai based Shriram Group. Piramal Enterprises also owns a 10 percent stake in Shriram City Union Finance.