TPG sells entire 2.65% stake in Shriram Finance for Rs 1400 crore

Mumbai: TPG, an American alternative asset manager, has sold its entire 2.65% cent stake in Shriram Finance through block deals for Rs 1,400 crore on Monday.

"It is a sale by TPG to some investors by way of a market operation. TPG held a 2.65% stake in Shriram Finance before this sale, which happened at zero discount to market price, implying good demand. TPG has been a long-term partner of Shriram Group for more than 15 years. They remain partners in the Group's insurance business. We believe they will look to deepen the relationship for newer opportunities within the Group," said a Shriram group spokesperson.

Shares of Shriram Finance opened at 1460 and touched an intra-day high of 1500 before closing at 1469.6. The company had a market capitalisation of Rs 55,086 crore at the closing price. Promoters of Shriram Group hold a 25.1% stake in the company.

Shriram Finance is the combined entity formed following the consolidation of the financial services business of the Shriram group, which resulted in the merger of Shriram Transport Finance, Shriram City Union Finance and Shriram Capital into Shriram Finance. The merger was completed in early December 2022.

TPG has been associated with Shriram Group for over 18 years. The private equity investor had first invested in the flagship company – Shriram Transport Finance Company. After that, it had invested in other companies – Shriram City Union Finance and Shriram Capital.


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