Piramal Enterprises has agreed to acquire an effective 20 per cent equity stake in Shriram Capital (‘Shriram Capital’ or ‘Company’), a financial services company, for an aggregate consideration of Rs 2,014 crore.
Shriram Capital Limited (SCL) is the overarching holding company for the Financial Services and Insurance entities of the Shriram Group, created with the primary objective of optimising the synergies across the Group’s entities. Shriram Capital’s operating entities, have an overall customer base in excess of nine million, more than 53,000 employees across 2,600 offices, net profit of Rs 800 crore with Assets Under Management (AUM) in excess of Rs 78,000 crore.
Piramal had invested Rs 1,636 crore in May last year to acquire ~9.9 per cent equity in Shriram Transport Finance Company, one of the listed NBFCs forming part of the Shriram Group.
Commenting on the investment, Ajay Piramal, Chairman of Piramal Enterprises, said, “This investment builds our presence in financial services sector and we see long-term shareholder value creation from our partnership with Shriram Capital. The company is well known for its culture and values, which resonates well with Piramal Group’s philosophy.”
Commenting on the partnership, R Thyagarajan, Founder, Shriram Group, said, “Shriram Group has pioneered providing financial services to the under-served section of the economy. Our success over the last four decades has been possible only through strategic partnerships. Piramals’ entry into Shriram Capital is a significant milestone for the Financial Services businesses to take a quantum leap in the Group’s contribution to the community at large.”
UBS was the sole financial advisor to Piramal for this transaction.
EP News Bureau – Mumbai