|Ajay Piramal (left) with R. Thyagarajan in Mumbai on Thursday. (PTI)
Mumbai, April 17: Piramal Enterprises will acquire a 20 per cent stake in Shriram Capital for Rs 2,014 crore, boosting its presence in the financial services sector.
The development comes a few days after Piramal sold its entire 11 per cent stake in Vodafone India.
Shriram Capital is the holding company for the financial services and insurance entities of Chennai-based Shriram Group, which controls Shriram Transport Finance and Shriram City Union Finance.
Shriram Capital’s operating entities have over 9 million customers and assets under management of over Rs 78,000 crore. Piramal had acquired a 9.9 per cent stake in Shriram Transport for Rs 1,636 crore last year.
“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.
On the investment made by Piramal, Shriram Group founder R.Thyagarajan said the company’s success over the past four decades had been possible through strategic partnerships.
In 2010, Piramal Healthcare Ltd sold its domestic formulations business to Abbott Laboratories for about $3.8 billion.
Since then, the company has been investing in financial services.
Thyagarajan said the sale proceeds would be used in expansion, including venturing into neighbouring countries and growing the insurance business.
On Shriram Group’s banking licence, he said it was awaiting fresh RBI guidelines.
Shriram Capital has over 9 million customers and 2,600 offices and more than 53,000 employees.