Piramal Enterprises today said it will buy a 20 per cent stake in Shriram Capital for Rs 2,014 crore, a move aimed at enhancing its presence in the financial services sector.
The company agreed to acquire an effective 20 per cent equity stake in Shriram Capital Ltd for a consideration of Rs 2,014 crore, Piramal Enterprises Ltd said in a statement.
"This investment builds our presence in financial services sector and we see long-term shareholder value creation from our partnership with Shriram Capital," Piramal Enterprises Chairman Ajay Piramal said in the statement.
Shriram Group Founder R Thyagarajan said the company's success over the past four decades has been possible through strategic partnerships.
"Piramal's entry into Shriram Capital is a significant milestone for the financial services businesses to take a quantum leap in the group's contribution to the community at large," Thyagarajan added.
Shriram Capital is the holding company for the financial services and insurance entities of the Chennai-based group, including Shriram Transport Finance Co and Shriram City Union Finance. It was created to optimise synergies across the group's companies.
Shriram Capital's operating entities have over 9 million customers, more than 53,000 employees across 2,600 offices, net profit of Rs 800 crore and assets under management in excess of Rs 78,000 crore.
Piramal had acquired a 9.9 per cent stake in Shriram Transport for Rs 1,636 crore last year.
Mumbai-based Piramal Enterprises, controlled by billionaire Ajay Piramal, operates in the pharmaceutical, financial services and information management sectors.
In 2010, Piramal Healthcare Ltd sold its domestic formulations business to Abbott Laboratories for about USD 3.8 billion.
Earlier this month, Piramal Enterprises sold its 11 per cent stake in Vodafone India to Britain's Vodafone Group Plc for Rs 8,900 crore.
Piramal Enterprises shares traded at Rs 600 on the BSE, up 0.7 per cent.
