Shriram Finance hits 52-week high as Piramal Enterprises may sell stake

21 Jun 2023 , 10:19 AM

Shriram Finance’s counter skyrocketed to hit a new 52-week high of Rs 1,793.55 in today’s trade as the company’s shares changed hands in a block deal.

As per the reports, Piramal Enterprises is likely to sell 8.34% stake in Shriram Finance for a consideration of Rs 4,630 crore. This would be another significant deal in the financial services sector. Morgan Stanley will act as the broker to this deal, stated the sources.

At around 10.04 AM, Shriram Finance was trading 8.68% higher at Rs 1,695 per piece, against the previous close of Rs 1,559.65 on NSE.

The floor price has been fixed at Rs 1,483 per share, representing a 4.9% discount to the National Stock Exchange’s closing price of Rs 1,559.85 on Tuesday.

The term sheet indicates that Piramal Enterprises may sell its stake on Wednesday, with an expected settlement date of June 22. The company plans to sell 3.12 crore shares of Shriram Finance.

Earlier in 2013, Piramal Enterprises sold its domestic pharmaceutical formulations business to Abbott Laboratories for an aggregate amount of Rs 17,000 crore, with a portion of the proceeds invested in Shriram Group companies.

Following this sale, Piramal Enterprises will not hold any stake in Shriram Finance.

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