Piramal Finance on Friday announced that the company has entered into a share purchase agreement with Shriram Life Insurance Company (SLIC) for the sale of its entire equity stake of 14.72% for a consideration of Rs 600 crore.
As per the company’s regulatory filing, it will sell its entire stake to Sanlam Emerging Markets (Mauritius). The transaction is expected to be completed by March 31, 2026, subject to regulatory approvals. Through the transaction, Piramal aims to monetise its non-core assets and strengthen its balance sheet, the company added.
For FY25, SLIC contributed Rs 12.68 crore to the company’s revenue, the NBFC added. The contribution was in the form of dividends that Piramal received from SLIC.
Shriram Life Insurance is the insurance arm of the Shriram Group, which operates as a joint venture between the conglomerate and the South African financial services group, Sanlam.
Piramal Finance share price
Following the announcement, the share price of Piramal Finance climbed nearly 2% during the intraday trading session. Over the past five days, the company’s stock has delivered a return of over 4%.
Japan MUFG picks up 20% stake in Shriram Finance
Meanwhile, Shriram Group’s lending arm, Shriram Finance, on Friday announced that Japan’s Mitsubishi UFJ Financial Group will pick up a 20% stake in the company for $4.4 billion.
The company’s board of directors has approved a fund raise of Rs 39,617.98 crore from Japan’s MUFG Bank, which will give the Japanese bank a 20% stake in the company on a fully diluted basis.
The fund raise will be carried out through the issuance of 47.11 crore fully paid-up equity shares at a price of Rs 840.93 per share, which includes a premium of Rs 838.93 per share.
With this transaction, MUFG will have the right to nominate two nominee directors to the board of Shriram Finance.
