Piramal Enterprises Ltd (PEL) has sold its entire stake in Shriram Investment Holdings Pvt Ltd (SIHPL) to Shriram Ownership Trust (SOT) for Rs 1,440 crore.
In a regulatory filing, the company said the sale is part of its strategy to monetise non-core assets, adding the proceeds will strengthen its balance sheet. The transaction is subject to SOT obtaining regulatory approvals and expected to be completed by March 31.
The contribution of SIHPL to the revenues of PEL in the last fiscal was nil. SOT is the promoter of Shriram Capital Pvt Ltd, the holding company of Shriram Group.
The Shriram group offers financial products in commercial vehicle financing, retail financing, chit funds, housing finance, life insurance, general insurance, stockbroking, distribution of financial products and wealth advisory.
In June, the Ajay Piramal company sold its 8.3 per cent stake in Shriram Finance for Rs 4,824 crore in the open market.
In November 2022, Shriram Transport Finance Company Ltd, Shriram City Union Finance Ltd and Shriram Capital Ltd merged to form Shriram Finance Ltd.
In 2019, PEL sold its entire stake in asset financing firm Shriram Transport Finance Company for Rs 2,305 crore.
PEL had sold its domestic formulation business to Abbott for Rs 17,000 crore in 2012-23, investing part of the proceeds in Shriram group firms.
It had purchased about 9.96 per cent of Shriram Transport Finance Company Ltd in May 2013 from the open market for Rs 1,636 crore.
PEL recently announced that Piramal Alternatives Trust (PAT), its wholly-owned subsidiary, will acquire a 10.4 per cent stake in Annapurna Finance for Rs 300 crore.
Annapurna Finance is a non-banking financial company, headquartered in Odisha. It is one of the top 10 MFIs in India, with assets under management of Rs 9,233 crore as of September 2023. The transaction is likely to be completed before March 31, 2024.
