Piramal Enterprises Shriram Finance: Share price, News today, loan details, personal loan

Piramal Enterprises Shriram Finance: Share price, News today, loan details, personal loan are discussed here.

Piramal Enterprises Shriram Finance

Ajay Gopikisan Piramal is an Indian billionaire businessman, and the chairman of the Piramal Group, a conglomerate with interests in pharmaceutical, financial services, real estate, healthcare analytics and glass packaging. As of September 2022, his net worth was estimated at US$3 billion.

Piramal Enterprises Sells Entire 8.34% Stake in Shriram Finance in Bulk Deal

The Ajay Piramal-led Piramal Enterprises Ltd has sold its entire 8.34% stake in Shriram Finance Limited to third-party investors in a bulk deal, reportedly priced at Rs1,483 per share. This follows a day after US private equity TPG sold its entire 2.65% stake in Shriram Finance. 

In a regulatory filing, Piramal Enterprises says, “…the company has sold its entire direct investment of 8.34% in the fully paid-up share capital of Shriram Finance to third party investors, on the floor of the stock exchange.”

Promoter and promoter group, including Shriram Capital Pvt Ltd, Shriram Value Services Ltd, and Shriram Ownership Trust own 23.50% of Shriram Finance. Sanlam Life Insurance Ltd, a promoter group entity, owns a 2.01% stake in the company as of March 2023. 

When the Shriram group was restructured, Piramal Enterprises received an 8.34% stake in Shriram Finance and 20% each in Shriram Gi Holdings, Shriram Li Holdings and Shriram Investment Holdings. 

In 2013, Piramal acquired a 10% stake in Shriram Transport Finance for Rs1,636 crore and, a year later, acquired a 20% stake in Shriram Capital for Rs2,014 crore. In the same year, it also bought a 10% stake in Shriram City Union Finance for Rs790 crore.

Shriram Finance was created after the merger of Shriram Transport Finance Co, the largest financier of commercial vehicles, and Shriram City Union Finance, the largest financier of two-wheelers and a pioneer in financing to micro, small, and medium enterprises (MSME).

At 2.06pm Wednesday, Piramal Enterprises was trading 13.82% higher at Rs954.55 while Shriram Finance was 11.23% up at Rs1734.50 on the BSE. The 30-share Sensex was marginally higher at 63,499 points.

Shriram Finance soars 10% despite block deal, Piramal Enterprises likely seller

Shares of Shriram Finance surged 10 percent in early trade on June 21 and hit a 52-week high of Rs 1,715.60 despite a block deal on the exchanges.

Around 3.2 crore shares, or a 8.3 percent stake, in the company changed hands on the exchanges at an average price of Rs 1,545, a one percent discount to the previous day’s closing price of Rs 1,559.65 on the National Stock Exchange.

The total deal value stood at Rs 4,944 crore. Though Moneycontrol could not immediately identify the sellers or the buyers, CNBC-Awaaz reported a day earlier that Piramal Enterprises was looking to sell its entire stake in Shriram Finance.

Investment management firm Morgan Stanley was the sole broker for the block deal, CNBC-Awaaz added.

The stake sale marks Piramal’s exit from the non-banking finance lender. Piramal Enterprises held an 8.34 percent stake in Shriram Finance as per the company’s shareholding data on BSE on March 31, 2023. The news of the stake sale also triggered a spike in the shares of Piramal Enterprises.

At 09.16 am, shares of Shriram Finance and Piramal Enterprises were both locked in the 10 percent upper circuit at Rs 1,715.60 and Rs 922.35, respectively, on the NSE.

Piramal’s exit comes just a couple of days after private equity firm TPG offloaded its entire 2.65 percent stake in the shadow bank for Rs 1,390 crore through open market transactions.

Institutional buyers such as ICICI Prudential Life Insurance Company, Norges Bank, Societe Generale ODI, Nippon India Mutual Fund, Aditya Birla Sun Life MF, Kotak Mahindra Life Insurance Company and Morgan Stanley Asia Singapore were among those who picked up TPG’s stake.

Recently, the management of Shriram Finance has given a strong growth outlook for the company which may be the reason why the stock did not react negatively to the large deals.

During a recent interview with CNBC-TV18, YS Chakravarti, the Managing Director and CEO of Shriram Finance, shared an optimistic perspective on the two-wheeler and farm equipment segments. Chakravarti predicted a strong growth rate of 10-12 percent for the two-wheeler sector, while the farm equipment sector is expected to experience a growth rate of 10-15 percent.

Taking into account the influence of pent-up demand, Chakravarti acknowledged, “We have observed a substantial amount of pent-up demand. Nevertheless, we anticipate a steady growth rate of 10-12 percent in the future. This projection is dependent on the government’s dedication to infrastructure projects, which we anticipate will generate additional sales. However, irrespective of external factors, we are confident that this 10 percent growth rate will be sustained throughout the year.”

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Shriram Finance, Piramal Enterprises and others exchanged hands on Wednesday saw heavy buying and selling.

According to data on NSE, Piramal Enterprises sold its entire stake in NBFC major Shriram Finance. Piramla Enterprises sold 8.34 per cent stake, i.e., 3,12,21,449 shares at an average price of ₹1,545 amounting to ₹482 crore.

Furthermore, Blackrock Global Funds World Financials Fund bought 19 lakh shares at an average price of ₹1,545, BNP Paribas Arbitrage ODI bought 21.26 lakh shares at an average price of ₹1,545, Ghisallo Master Fund LP bought 20 lakh shares at an  average price of ₹1,545, Government Of Singapore Invt Corpn PTE Ltd bought 91.22 lakh shares at ₹1,545, New World Fund bought 19.54 lakh shares at an average price of ₹1,545 and Societe Generale bought 30.44 lakh shares at an average price of Rs1,545.

While, Piramal Finance too saw buying and selling. Graviton Research Capital LLP sold 14.54 lakh shares at an average price of ₹947.40 and it bought 14.31 lakh shares at an average price of ₹947.18.

Societe Generale also bought 2,96,123 shares at an average price of ₹527.93 in Thyrocare Tech Ltd.

Ebene Global Opportunity Fund also sold shares in Kamdhenu Ventures Limited. It sold 1,70,000 shares at an average price of ₹245.59

According to data on BSE, Sula Vineyards also saw buying and selling. Karishma Singh sold 500,000 shares at an average price of ₹471.03. While, Quant Mutual Fund bought 500,000 shares at an average price of ₹470.99.

Piramal Enterprises Shriram Finance: Share price, News today, loan details, personal loan

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