Shriram Capital signals exit of Piramal Enterprises, TPG

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Published: June 26, 2019 2:55:29 AM

Shriram Capital indicated on Tuesday in a media statement that both Piramal Enterprises and private equity firm TPG are evaluating their exit from the firm.

sriram capital, piramal mgPiramal Enterprises holds close to 20% in Shriram Capital. (Website)

Shriram Capital indicated on Tuesday in a media statement that both Piramal Enterprises and private equity firm TPG are evaluating their exit from the firm.

“Both Piramal Enterprises (PEL) and TPG are evaluating the feasibility of selling their respective shareholding in Shriram Capital (SCL). We understand that PEL’s evaluation of exit from SCL is part of its long-term strategy to fund growth of its financial services business. TPG’s evaluation of an exit from SCL is consistent with its investment review practices, and takes into account, among other factors, the period of time TPG has been invested in SCL. If and when definitive documents for such a transaction are executed, appropriate disclosures will be made in accordance with applicable laws,” Shriram Capital said in a statement.

Piramal Enterprises holds close to 20% in Shriram Capital. DV Ravi, MD at Shriram Capital and managing trustee of Shriram Ownership Trust (SOT), indicated that going forward, the Shriram Group enterprises will be governed and managed by SOT. “Leadership, vision and direction to the Shriram Group Companies (SGC) will be provided by SOT, mainly through the respective SGCs Boards. SOT will continue to actively engage with Sanlam, (who are also our partners in SCL and the two insurance businesses with stake of 26% and 23%, respectively) and other stakeholders to drive the businesses forward,” Ravi said in the release.

Also read: Piramal sells stake in Sriram Transport Finance

He also added that SCL will evaluate on a continual basis various restructuring initiatives like rationalisation of holding structure, including consolidation/acquisition, restructuring/combinations between the various entities in the SGCs in the form of mergers/demergers etc. These initiatives will help optimise cost, drive synergies and cut out intermediate layers with a view to enhance value to various stakeholders.
Piramal Enterprises had indicated in a stock exchange filing on Monday that it is evaluating the feasibility of sale of the entire stake held by the company in Shriram Capital.

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