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Piramal to buy 20% stake in Shriram Capital for R2,014 cr

The deal values the Chennai-based company at over Rs 10,070 crore.

By: Press Trust of India | Mumbai | Updated: April 17, 2014 11:28:48 pm

Piramal Enterprises on Thursday said it will buy 20 per cent stake in Shriram Capital for Rs 2,014 crore, a move that will widen its play in the financial services space.

Piramal Enterprises is hopeful that the deal will not lead to an open offer as half of the 20 per cent stake it is buying will come as fresh equity and the rest from existing shares of Shriram Ownership Trust, which owns 64 per cent in Shriram Capital. The deal values the Chennai-based company at over Rs 10,070 crore.

“Buying of 20 per cent stake in Shriram Capital for Rs 2,014 crore is partly through fresh equity, which is half of it coming through fresh equity and and rest 10 per cent from Shriram Ownership Trust, which will sell 10 per cent stake to us,” chairman Ajay Piramal said.

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