Share price of Piramal Enterprises fell over 4% intraday as the after the firm said it was evaluating feasibility of entire stake sale in Shriram Capital, following the recent disinvestment in Shriram Transport Finance.
"Following the sale of the entire shareholding in Shriram Transport Finance Company Limited, as a part of the long-term strategy of the company to fund growth of its financial services business, the company is evaluating the feasibility of sale of the entire (effective 20%) stake held by the company in Shriram Capital Limited, " Piramal Enterprises said.
From the previous close of Rs 1945.60 on BSE, the share price of Piramal Enterprises opened with 1.76% gain of Rs 1979.95, also its day's high.
Following the clarification announcement to the exchange platforms, the stock price fell to day's low of Rs 1868, at a loss of 3.99%. The stock has fallen after 3 days of consecutive gain. Later the stock further fell to a new low at Rs 1,861, a loss of 4.3% against the last close.
The stock is trading down at Rs 1883.90, by 3.17% or 61.70 points currently on BSE.
The regulatory filing further added, "The Proposed Transaction would be subject to receipt of necessary approvals, including the approval of the Board of Directors of the Company at the appropriate stage, and necessary disclosures will be made by the Company at the relevant time, in accordance with applicable law."
As per media reports, in the year 2013, Piramal Enterprises picked up 9.9% stake in Shriram Capital, an unlisted holding company for the financial services and insurance entities of the Shriram Group, for Rs 1,636 crore and further grew it to 20% for a consideration of Rs 2,014 crore by 2014.
According to Shriram Capital's website, the firm is well positioned in businesses like Transportation, Equipment Finance and providing the necessary impetus to grow its Retail Finance businesses.
Recently Piramal Enterprises had sold its entire stake holding in commercial vehicle financier, Shriram Transport Finance as a part of its long term strategy to redeploy funds for strategic growth of its own financial services business and exit from investments in Shriram Group companies.
(Edited by Rupa Burman Roy)
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