Deutsche Securities Mauritius Ltd, part of Deutsche Bank AG, had picked up a minority stake in the Chennai-based vehicle financing firm, Shriram Transport Finance Company (STFCL) for a value of over Rs 240 crore.

The Deutsche Bank arm had picked up the stake in the Chennai-based vehicle financier in a single deal executed on NSE.

According to information available with FE, Deutsche Bank had lapped up 30,39,642 shares of STFCL in a single block deal on NSE at a price of Rs 790.33 per share. This translate into 1.35% of the total outstanding equity of the Shriram Transport Finance. The total consideration Deutsche Bank paid for the stake worked out to be Rs 240.23 crore, which puts the enterprise value of STFCL well over Rs 2,000 crore, according to market sources. The company stock closed on NSE on Friday at Rs 770, down by 2.06%. The stock has an yearly high of Rs 805 and an yearly low of Rs 360. STFCL has a market capitalisation of Rs 17,481 crore.

Deutsche Bank is one of the most active foreign institutional investor (FII) in the Indian securities market and holds stakes in over 50 companies listed on NSE and BSE. The list includes names like ABL Bio in which Deutsche Bank holds 32.55%, Asahi Infrastructure (73.15%), Empower Industries (15.42%), ICICI Bank (28.93%), Maars Software (10.75%), Monnet Ispat (9.12%), Axis Bank (2.15%), and Eicher Motors (3.31%). Incorporated in 1979, STFCL is the flagship company of the Chennai-based Shriram Group with interests in finance and insurance among others. For the quarter ended June this year, the company had posted a net profit of Rs 288.94 crore over a net income of Rs 1,226.92 crore.

STFCL is one of the largest vehicle financing firms in the country with a network of close to 500 branches and service centres. The company, in February this year, had raised close to Rs 584 crore by way of a qualified institutional placement (QIP). While promoters hold 41.40% in the company, mutual funds hold 4.60% and foreign institutional investors 35.44%.

The remaining shares are held by the public. Genesis India Investment Company, Copthall Mauritius, FID Funds, Wellingtoin Management Company, Columbia Acorn International, and Government Pension Fund Global are the major foreign institutional investors in the company.