On January 27, the company announced in an exchange filing that Piramal Enterprises had chosen to sell Shriram Investment Holdings its whole interest for ₹1,440 crore to Shriram Ownership Trust.
The company has a share purchase agreement in place to sell all of its 20% fully paid-up equity share capital in Shriram Investment Holdings, which represents its direct investment. The promoter of Shriram Group’s holding company, Shriram Capital Pvt., Shriram Ownership Trust, is subject to obtaining the necessary regulatory approvals before completing the transaction.
This deal fits in with our goal of making money off of non-core assets. Our balance sheet will be further strengthened by the transaction’s proceeds, according to Piramal Enterprises.
The filing states that the divestment is anticipated to be finished by March 31, 2024. Additionally, Shriram Investment Holdings made up zero of Piramal Enterprises’ revenue for the fiscal year that concluded on March 31, 2023.
This is Piramal Enterprises’ second Shriram Group divestment, having previously sold its stake in Shriram Investment Holdings. Through several block deals totaling ₹4,824 crore, the company sold its entire 8.3% stake in Shriram Finance in June of last year.
It should be mentioned that in 2014, Piramal Enterprises invested ₹2,014 crore for a 20% stake in Shriram Capital; in 2013, they invested ₹1,636 crore for a 9.9% stake in Shriram Transport Finance Company (now Shriram Finance); and in 2014, they invested ₹790 crore for a 10% stake in Shriram City Union Finance.
Shriram Group, of which Shriram Investment Holdings is a part, distributes financial products, provides wealth advisory, life and general insurance, stockbroking, retail financing, chit funds, housing finance, commercial vehicle financing, and stockbroking.
