Piramal Enterprises has acquired 9.99 per cent stake in Shriram City Union Finance for a total of Rs. 790 crore.
The Mumbai-based firm has acquired 65,79,840 equity shares of Shriram City Union Finance Ltd, the retail focused non-banking financial company (NBFC) of the Shriram Group, Piramal Enterprises said in a statement.
The acquisition, by way of a preferential allotment of shares by Shriram City Union, was at a price of Rs. 1,200 per equity share, taking the total capital paid at Rs. 790 crore, it added.
“We are happy that the shareholders of Shriram City Union Finance have approved our investment in the company. This capital infusion will support its present business model and help further its growth plans over the next few years,” Ajay Piramal, chairman of the Piramal Group said.
Shriram has a good team and the company is confident about creating long-term value for shareholders of both the companies, he added.
In April, Ajay Piramal-led Piramal Enterprises had announced that it proposed to acquire 9.99 per cent stake in NBFC firm Shriram City Union Finance for about Rs. 790 crore.
Shriram City Union Finance is a deposit-accepting non-banking financial company (NBFC) specialising in retail finance.
With assets under management of Rs. 15,800 crore, the company offers multiple loan products to small business owners and for acquiring assets such as two wheelers, commercial vehicles, passenger vehicles, consumer durables and homes.
Shriram City Union Finance is a part of Shriram Capital in which Piramal Enterprises has acquired a 20 per cent stake for a total consideration of Rs. 2,014 crore.