TPG India sells entire 2.65% stake in Shriram Finance for ₹1,390 crore

TPG India Investments II Inc sold its entire 2.65 percent stake, or 99.2 thousand shares, in Shriram Finance via multiple deals on BSE on Monday, according to exchange data.

The shares were trading at $1,401.00 versus Friday’s close of $1,401.15. After the block deals, the stock rose to touch a one-month high of INR1,500 on the day but later pared some gains to end up 5 percent higher at INR1,469.60 on BSE. As per the transaction price, the transaction value is around Rs 1,390 crore.

US-based private equity firm TPG first invested in the Shriram Group via Shriram Transport Finance 18 years ago. It was looking to exit the group lending business following the triple merger of Shriram City Union Finance and Shriram Capital with Shriram Transport Finance in December 2022 to establish Shriram Finance. However, TPG continues to own a stake in the group’s insurance business.

Kotak Funds India Midcap Fund, which bought the most shares at 16.6K shares, was the single largest buyer. Other buyers include Nippon Mutual Fund, DSP Mutual Fund, Aditya Birla Sun Life Mutual Fund, East Spring Investments, Morgan Stanley Asia Singapore, Goldman Sachs Singapore PTE, and Norges Bank on behalf of Government Pension Fund Global, from Among others, who bought the stake through various schemes and funds.

The Norway-based Global Government Pension Fund already holds a 2.13 percent stake in Shriram Finance as of March 2023.

sell earlier

Prior to this, in January 2023, PE Apax Partners, through its Dynasty Acquisition arm, sold 80 shares or 2.95 per cent of Shriram Finance at a price of Rs 1,300 per share. Dynasty Acquisition, which owns Rs 1.73 crore shares of Shriram Finance, acquired the stake in Shriram City Union Finance from TPG Capital in 2015.

Then FID Funds Mauritius Ltd, part of US-based Fidelity Investments, bought 66.28 lakh shares or 2.45 per cent. The remaining shares were purchased by ICICI Prudential Life Insurance, Norges Bank – on behalf of the Norwegian Government Pension Fund Global, Societe Generale, BNP Paribas Arbitrage Fund and Aditya Birla Sun Life Insurance.