Piramal Enterprises Agrees To Acquire 20% Equity Stake In Shriram Capital

Piramal Enterprises announced that it has agreed to acquire an effective 20% equity stake in Shriram Capital, a financial services company, for an aggregate consideration of Rs. 2014 crore.

Shriram Capital (SCL) is the overarching holding company for the Financial Services and Insurance entities of the Shriram Group, created with the primary objective of optimizing the synergies across the Group's entities. Shriram Capital's operating entities, have an overall customer base in excess of 9 million, more than 53000 employees across 2600 offices, net profit of Rs. 800 crore with Assets Under Management (AUM) in excess of Rs. 78000 crore.

Piramal had invested Rs. 1636 crore in May last year to acquire ~9.9% equity in Shriram Transport Finance Company, one of the listed NBFCs forming part of the Shriram Group.

Commenting on the investment, Mr. Ajay Piramal, Chairman, Piramal Enterprises, said "This investment builds our presence in financial services sector and we see long term shareholder value creation from our partnership with Shriram Capital. The Company is well known for its culture and values, which resonates well with Piramal Group's philosophy."

Commenting on the partnership, Mr. R. Thyagarajan, Founder of Shriram Group, said "Shriram Group has pioneered providing financial services to the under-served section of the economy. Our success over the last four decades has been possible only through strategic partnerships. Piramals' entry into Shriram Capital is a significant milestone for the Financial Services businesses to take a quantum leap in the Group's contribution to the community at large".

UBS was the sole financial advisor to Piramal for this transaction.