Shriram City hits record high on Piramal investment

Reuters Market Eye - Shares of Shriram City Union Finance Ltd rose as much as 5.7 percent to a record high after Piramal Enterprises Ltd agreed to take a 9.99 percent stake in the non-banking financial company.

Piramal's investment is aimed as a strategic involvement rather than a passive financial investor, boosting Shriram's outlook, said an analyst with a leading domestic brokerage.

Piramal has been buying shares in other companies belonging to the Shriram Group.

Last month, it agreed to buy a 20 percent stake in unlisted Shriram Capital for $334 million. Last year, Piramal bought a 9.9 percent stake in Shriram Transport Finance Co Ltd.

(Reporting by Indulal P)