Piramal takes 10% in Shriram co for Rs 790 cr
Ajay Piramal-led Piramal Enterprises is set to pick up 10% in Shriram City Union Finance for Rs 790 crore, underlining his role as a high-profile investor in industry consolidation.business Updated: May 02, 2014 00:05 IST
Ajay Piramal-led Piramal Enterprises is set to pick up 10% in Shriram City Union Finance for Rs 790 crore, underlining his role as a high-profile investor in industry consolidation.
Rich with cash from the sale of his entire stake in Vodafone India for Rs 8,900 crore earlier this month on the back of a rich sell-out in pharmaceuticals in 2010, the 58-year-old billionaire is eyeing a big story in financial services.
Shriram City Union Finance will issue 65,79,840 equity shares to Piramal on a preferential basis at a price of Rs 1,200 each including a premium of Rs 1,190 per share.Shriram City Union is a non-banking financial services company (NBFC), which provides loans to small businesses as well as personal, auto and gold loans. It reported a consolidated net profit of Rs 532 crore on a total income of Rs 3,209 crore in 2013-14.
This is Piramal’s third investment in the Rs 76,000-crore Shriram Group. Last month, Piramal picked up 20% stake in Shriram Capital for Rs 2,014 crore. In May 2013, the company picked 9.9% stake in Shriram Transport Finance for Rs 1,636 crore.
Piramal Enterprises chairman Ajay Piramal could not be reached for comments on the latest investment.