Private equity firm Apax Partners is looking to exit its shareholding in Shriram Finance by selling its entire 4.63 per cent stake for a total value of up to ₹2,250 crore via a block deal on Friday, sources told businessline.

The stake will be sold through Apax Partners’ arm Dynasty Acquisition, which holds 1.73 crore shares of Shriram Finance, formed as a result of the three-way merger of Shriram City Union Finance and Shriram Capital with Shriram Transport Finance effective December 12.

“We have actually picked up some (stake). We are looking at about 26 per cent. So till such time, we will pick it up,” said YS Chakravarti, MD and CEO, Shriram Finance. If Apax Partners offloads its stake on Friday, the company might look to pick up some shares if the price is favourable, he added.

The promoter group holds a 23.22 per cent stake in the merged entity Shriram Finance, wherein Shriram Finance Ventures holds a 17.93 per cent stake, Shriram Value Services holds a 3.20 per cent stake, and Shriram Ownership Trust holds a 2.09 per cent.

Apax Partners acquired the stake in Shriram City Union Finance from TPG Capital in 2015. As of December 12, Dynasty Acquisition held a 4.63 per cent stake in Shriram Finance whereas TPG India Investments II, Inc held a 2.65 per cent stake.

Deal size

The total deal size includes a greenshoe option and Apax is likely to sell the shares at a discount of up to 6 per cent. The floor price is likely to be ₹1,300 a share, sources said, adding that Kotak Securities is expected to broker the deal.

Shares of the merged entity Shriram Finance were listed on the bourses on December 29.

Earlier, businessline had reported that Piramal Enterprises is also looking to exit its shareholding once the shares of the merged entity are listed on the exchanges. The company holds an 8.34 per cent stake in Shriram Finance.