Shares of Shriram Transport Finance Company (STFC) tumbled over 6 per cent in early deals on the Bombay Stock Exchange (BSE) on Monday after Piramal Enterprises sold its entire stake in the company.
"The company has sold its entire direct investment of 9.96 percent in the fully paid-up share capital of Shriram Transport Finance Company Ltd to third party investors on the floor of the stock exchange," Piramal Enterprises Limited (PEL) said in the exchange filing.
Based on STFC shares opening price of Rs 1,020 apiece, PEL might have raised Rs 2,305 crore from the stake sale, news agency PTI reported. The company had acquired 9.96 percent stake in the non-banking finance company through block deals in the open market at Rs 723 per share in 2013.
According to media report, PEL has been planning to exit from the Shriram group of companies, including STFC, Shriram City Union and Shriram Capital. Piramal group owns 10 per cent stake in Shriram City Union Finance and holds 20 per cent stake in Shriram Capital.
Reacting to the news, share price of Shriram Transport Finance declined as much as 6.52 per cent to hit an intra-day low of Rs 1,006.25, after opening lower at Rs 1,020 on BSE.
In a similar fashion, stocks of Shriram Transport Finance were trading 6.03 per cent lower at Rs 1,019.50 on the National Stock Exchange. The scrip opened lower at Rs 1,024 and touched an intra-day low of Rs 1,000.
During the March quarter, Shriram Transport Finance posted a 22.4 per cent decline in its net profit at Rs 746.04 crore, while its total income rose to Rs 3,880.43 crore from Rs 3,605.47 crore in the year-ago period.
Meanwhile, shares of Piramal Enterprises were trading at Rs 2,018.50 apiece, down 2.41 per cent, on the BSE against previous close level of Rs 2,068.45.
Edited by Chitranjan Kumar