Shares of Piramal Enterprises traded 3 percent higher to Rs 901 on January 29, extending gains for the third session in a row, after the company decided to divest its complete shareholding in Shriram Investment Holdings to Shriram Ownership Trust for a total consideration of Rs 1,440 crore.
At 9:20, the stock was trading at Rs 887, up 1.5 percent from the previous close. They have given a return of 7 percent in the last year, though it was far below the Nifty's return of 21 percent in the same period.
The company has signed a share purchase agreement to divest its entire direct investment constituting 20 percent of the fully paid-up equity share capital in Shriram Investment Holdings. The stake sale is subject to approval from Shriram Ownership Trust, the promoter of Shriram Capital, the holding company of Shriram Group.
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"This transaction is aligned with our focus on monetising non-core assets. The proceeds from the transaction will further strengthen our balance sheet," the company said in a regulatory filing on January 27.
The stake sale is expected to be completed by March 31. Piramal also stated that Shriram Investment Holdings did not contribute to its revenue for the fiscal year ended on March 31, 2023.
The sale marks its second divestment from the Shriram Group. In June 2022, the company sold its entire 8.3 percent stake in Shriram Finance through multiple block deals amounting to Rs 4,824 crore.
Piramal Enterprises is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India (RBI), with a presence across retail lending, wholesale lending, and fund-based platforms. The company has investments and assets worth $10 billion, with a network of over 300 branches across 25 states and Union Territories.
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