Outlook for Piramal Enterprises is not bright; stock falls over 3%

Further unwinding of positions in Shriram Group firms is key worry

Things weren't working out well between Piramal Enterprises (PEL) and the Shriram Group and it was not surprising that the former sold a 9.88 per cent stake in Shriram Transport on Monday. However, the stocks of Shriram Transport and PEL still fell over 6 per cent and 3 per cent, respectively, on Monday. PEL held a 20 per cent stake in the holding company (Shriram Capital) and 10 per cent each in Shriram Transport Finance and Shriram City Union before Monday's transaction.

Trouble started after Shriram Group's second attempt to convert into a banking franchise by acquiring IDFC Bank in