Piramal exits Shriram Finance for ₹4,824 crore, GIC Singapore picks up stake

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Piramal projects On Wednesday it sold its entire stake of 8.34 per cent, or Rs 3.12 crore share, in Shriram Finance via multiple deals on the National Stock Exchange.

All transactions were made at Rs 1,545 per share against the floor price of Rs 1,483 and Tuesday closing price of INR 1,559.65. This translated into a deal value of around Rs 4,824 crore.

After the block deals, shares of Shriram Finance rose 15 per cent, touching its upper band at a record high of INR 1,793.55. It later pared some gains to close 11.3 percent higher at INR 1,736.00.

GIC Singapore, Singapore’s sovereign wealth fund, was the largest buyer acquiring 91.2 lakh shares followed by Societe Generale ODI which bought 30.4 lakh shares of Shriram Finance. A total of 54 buyers participated in the block trades.

Others included big buyers who bought between 1-10 lakh shares.

Other buyers include HSBC, Bajaj Allianz Life Insurance, ICICI Prudential Life Insurance, Invesco Mutual Fund and several other foreign funds.

Many local institutional investors have bought stakes in retail-focused NBFC due to the recent exit of some big players. Piramal’s exit is the third such exit since the triple merger of Shriram Capital and Shriram City Union Finance with Shriram Transport Finance in December 2022 to create Shriram Finance.

Earlier this week, TPG India Investments sold its entire 2.65 per cent stake in Shriram Finance for Rs 1,390 crore. Prior to that, in January, PE Apax Partners sold its 2.95 per cent stake for Rs 1,300 crore, also via block deals.