Piramal buys 10pc equity in Shriram Transport

Piramal Enterprises Ltd. has announced that Piramal has acquired 22,847,468 shares of Shriram Transport Finance Company Limited, representing approximately 10pc of total equity of the company. Piramal paid Rs.723 per share. The total consideration was Rs. 1,652 crore. The transaction was completed on the floor of the exchange. Piramal had earlier announced its foray into the financial services business. Piramal’s financial services business includes an NBFC for lending to real estate and education sectors, a real estate focused private equity company infrastructure sector. Shriram Transport is India's largest player in commercial vehicle finance with a niche presence in financing pre-owned trucks and small truck owners. Shriram’s funding operations also brings in financial inclusion for many small truck owners in small towns. The company has a network of 528 branches and service centers across India. It is also one of the largest asset financing NBFCs in India. Shriram Transport had revenue of Rs. 7,014 crore and PAT of Rs. 1,463 crore for the financial year ending 31st March 2013. The company had assets of over Rs 52, 717 crore under management as of March 31, 2013.