Piramal Enterprises has recently finalized a share purchase agreement to divest its entire 20% direct investment in Shriram Investment Holdings Private Limited (formerly known as Shriram Investment Holdings Limited) to Shriram Ownership Trust (SOT). The deal is valued at Rs 1,440 crore and is contingent upon receiving necessary regulatory approvals by SOT, with completion anticipated before March 31, 2024.
For the fiscal year ending March 31, 2023, Shriram Investment Holdings Private Limited (SIHPL) did not contribute to Piramal Enterprises' revenue. The move is in line with Piramal Enterprises' strategic focus on divesting non-core assets, and the funds generated from the transaction are expected to fortify the company's balance sheet.
Shriram Ownership Trust is the promoter of Shriram Capital Private Limited, serving as the overarching holding entity for the Shriram Group. The diversified financial services offered by Shriram Group encompass commercial vehicle financing, retail financing, chit funds, housing finance, life insurance, general insurance, stockbroking, and distribution of financial products, among others. Notably, Shriram Ownership Trust is not affiliated with any of Piramal Enterprises' promoter group companies.
Piramal Enterprises clarified that this transaction does not fall under related party transactions, affirming its commitment to optimizing its asset portfolio and reinforcing financial stability.
(With Agency Inputs)