Apax Partners to sell its entire share capital in Shriram Finance
- ByStartupStory | January 13, 2023
Apax Partner, a private equity group, plans to sell its whole share in Shriram Finance in block sales on Friday.
Taking today’s stock movement into account, the transaction will be worth Rs 2,250 crore.
Shriram Finance has three major non-promoter shareholders: Piramal Group, private equity company TPG, and Apax Partners. Shriram Finance is owned by the three companies collectively to the tune of 15%.
“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 favorable, he added.
The promoter group owns a 23.22 percent investment in Shriram Finance, of which Shriram Finance Ventures, Shriram Value Services, and Shriram Ownership Trust each own 17.93 percent, 3.20 percent, and 2.09 percent.
2015 saw TPG Capital sell its investment in Shriram City Union Finance to Apax Partners. Shriram Finance was owned by Dynasty Acquisition to the tune of 4.63 percent as of December 12 and 2.65 percent by TPG India Investments II, Inc.
The greenshoe option is included in the deal size, and Apax is likely to sell the shares at a discount of up to 6%. According to reports, the deal’s floor price would probably be 1,300 per share, and Kotak Securities will likely act as the deal’s broker.
On December 29, shares of the combined company Shriram Finance were listed on the stock exchanges.
Businessline previously reported that Piramal Enterprises is planning to sell its shares once the combined company’s shares are listed on exchanges. Shriram Finance is owned by the corporation to the tune of 8.34%.
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