New Delhi: Piramal Enterprises Monday said it is planning to sell its entire holding of around 20 per cent stake in Shriram Capital Ltd to fund growth of its financial services business.
The company had earlier this month sold its entire holding of 10 per cent holding in Shriram Transport Finance Co Ltd for ₹2,300 crore.
"As part of the long-term strategy of the company to fund growth of its financial services business, the company is evaluating the feasibility of sale of the entire (effective 20 per cent) stake held by the company in Shriram Capital Ltd," Piramal Enterprises said in a regulatory filing.
The proposed transaction would be subject to receipt of necessary approvals, including the approval of the company's board of directors at the appropriate stage, it added.
Piramal Enterprises, however, did not disclose details such as the expected valuation of its stake in Shriram Capital, potential buyer and timeline for closing the deal.
In 2013, the company had initially picked up 9.9 per cent stake Shriram Capital for ₹1,636 crore and later in the next year increased it to effectively 20 per cent with an outlay of ₹2,014 crore.
In April this year, Piramal Enterprises had announced its intention to exit from investments in Shriram and optimally redeploy capital for strategic growth in its own financial services business.
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