Millennium Post

Piramal buys 10% of Shriram Transport Finance for Rs1,652 cr

Piramal Enterprises, a Piramal Group firm, on Friday said that it has acquired nearly 10 per cent stake in Shriram Transport Finance Company for a total consideration of Rs 1,652 crore.

'Piramal has acquired 2,28,47,468 shares of Shriram Transport Finance Company Ltd representing approximately 10 per cent of the total equity of the company. Piramal paid Rs 723 per share,' the company said in a filing to BSE.

Commenting on the development, Piramal Enterprises chairman Ajay Piramal said: 'Acquisition of this stake in Shriram Transport is in line with our strategy for building our presence in the financial services sector and we see long term shareholder value creation from this stake acquisition.'

Shriram Transport is one of the largest players in commercial vehicle finance with presence in financing pre- owned trucks and small trucks. The Piramal group had earlier announced its foray into the financial services sector and its business in the segment includes a non-banking financial company (NBFC) for lending to real estate and education sectors, a real estate focused private equity company 'IndiaREIT' and a special vehicle for investments in infrastructure sector.
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