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Piramal Enterprises Ltd (PEL) on Monday said it has has sold its entire direct investment of 9.96 per cent in the fully paid-up share capital of Shriram Transport Finance Company Ltd (STFC) to third party investors on the floor of the stock exchange. PEL had acquired this stake in 2013.
According to reports, the PEL, which is a diversified company with presence in Pharma, Financial Services and Healthcare Information Management, sold 22.65 million shares of STFC. Details of the buyers and the price are awaited.
The divestment comes in the backdrop of non-banking finance companies facing liquidity issues. In Financial Services, Piramal Capital & Housing Finance Limited (PCHFL), wholly owned subsidiary of PEL, is registered as a housing finance company with National Housing Bank (NHB) and engages in various financial services businesses --provides both wholesale and retail funding opportunities across sectors.
PEL, whose shares were trading down 2.25 per cent at ₹ 2,022 apiece at 1305 hours, has 20 per cent stake in Shriram Capital Ltd (SCL), the holding company of STFC, and 10 per cent stake in Shriram City Union Finance (SCUF) in 2014.
PEL's originally made strategic investment of ₹ 1,636 crore in STFC; ₹ 2,146 crore in SCL; and ₹ 801 crore in SCUF. As per its annual report for FY2018, PEL got around 16 per cent annualised return on its investments in STFC and SCUF.
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