)
Private equity firm TPG has sold its 10% stake in Shriram Transport to Ajay Piramal. Around 22.6 million shares were sold as a block deal on BSE at Rs 723 a share.
Piramal will pay Rs 1,600 crore to buy TPG stake.
The deal paves the way for cash-rich Piramal to park their funds in Shriram Transport, which is planning to apply for a banking licence.
UBS was the broker to the deal.
Ajay Piramal, chairman of Piramal Enterprises said, "The acquisition of this stake in Shriram Transport is in line with our strategy for building our presence in financial services sector and we see long term shareholder value creation from this stake acquisition."
This is yet another big ticket investment by Piramal after the Vodafone India stake. Piramal Healthcare had picked up 11% stake for Rs 5,900 crore in two tranches in the Indian arm of Vodafone. The company had invested Rs 2,893 crore in August 2011 for 5.5% stake and then another Rs 3,007 crore in February last year for the remaining 5.55% stake.
It had, however, in April said it would offload its 11% stake in Vodafone India. Piramal Group Chairman Ajay Piramal today said the company will exit its stake next year.
