After roughly 10 million shares are traded in a block transactions, the price of Shriram Finance increase

19 Jun 2023 , 12:45 PM

After 99.2 lakh shares, or 2.66% of Shriram Finance Ltd.’s total equity, were traded in a significant transaction on Monday, the company’s shares increased by as much as 7%. The average price per share at the time of the transaction was Rs 1,401.15.

The transaction is estimated to have cost Rs 1,390 crore in total. Although the transaction’s buyers and sellers are not publicly known, insiders tell CNBC-TV18 that private equity firm TPG is most likely the transaction’s seller.

Shriram Finance Ltd. offers a variety of financial services, including retail lending (personal loans, gold loans, and two-wheeler loans), commercial vehicle credit, passenger car finance, and SME finance.

Other significant public owners in the business besides the promoters, who own 25.51% of it, include LIC, Mirae Asset Mutual Fund, and others. With an 8.34% ownership as of the March quarter, Piramal Enterprises is the second significant shareholder in the business.

On June 16 for the fiscal year 2023, the corporation had just paid its final dividend of Rs 20 (a 200% increase).

Capital International acquired a sizeable position in Shriram Finance earlier in March following the sales of 85.5 lakh shares by Dynasty Acquisition (FPI) Ltd., a subsidiary of the private equity firm Apax Partners, and 25 lakh shares by Arkaig Acquisition (FPI) Ltd.

Shriram Finance’s YS Chakravarti stated that the company will continue to see a 10% growth rate for the fiscal year 2024 in an interview with CNBC-TV18 on June 9. He continued by saying that the business anticipates growth of 10–12% in the two-wheeler market and 15–20% in the farm equipment market. He also discussed the demand for passenger car replacements in the ride-hailing sector.

At Rs 1,472.90, Shriram Finance shares are currently trading 5.1% higher. The stock has gained 6.3% so far this year.

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