Piramal Enterprises will sell its entire stake of 8.34 percent in Shriram Finance via block deal, CNBC-Awaaz reported on June 20, citing sources who are privy to the development.
To offload the stake, Piramal will be required to sell around 3.1 crore shares it currently holds in the non-banking financial company.
The floor price for the block deal is likely to be Rs 1,483 per share, the sources said. This would mark a discount of around 5 percent, as the current market price of Shriram Finance's stock is Rs 1,559.45 on the BSE.
Investment banking firm Morgan Stanley will be the sole broker for the block deal, the sources added.
Piramal's decision to exit Shriram Finance, as reported by CNBC Awaaz, comes a day after private equity firm TPG divested its entire 2.65 per cent stake in the NBFC for Rs 1,390 crore through open market transactions.
TPG through its affiliate — TPG India Investments II Inc — offloaded the shares in 18 tranches. The 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 posted a net profit of of Rs 1,288 crore, which was up 18 percent year-on-year. The consolidated net interest income (NII) came in at Rs 4,533 crore, which was 72 percent higher as against the corresponding period of FY22.
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