Piramal Enterprises Ltd has acquired 10 per cent equity stake in Shriram Transport Finance Company Ltd for a total consideration of Rs 1,652 crore through the stock exchange.
The company belonging to the Ajay Piramal group acquired 2.28 crore shares of Shriram at Rs 723 per share. Piramal had earlier announced its foray into the financial services business that includes an NBFC for lending to real estate and education sectors and a real estate focused private equity company. Shriram shares rose 3.60 per cent to Rs 760.50 on the BSE on Friday.
“This investment is in line with Piramal’s long term strategy for the financial services business,” Ajay Piramal, chairman of Piramal Enterprises, said.
“The acquisition of this stake in Shriram Transport is in line with our strategy for building our presence in financial services sector and we see long-term shareholder value creation from this stake acquisition,” he said.
Shriram Transport is India’s largest player in commercial vehicle finance with a niche presence in financing pre-owned trucks and small truck owners.
Its funding operations also brings in financial inclusion for many small truck owners in small towns. The company has a network of 528 branches and service centres across India.