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MUMBAI: Piramal Enterprises has announced the sale of its 20% direct investment in Shriram Investment Holdings to Shriram Ownership Trust (‘SOT’) for Rs. 1,440 crore. The transaction is contingent on SOT obtaining regulatory approvals and is anticipated to conclude by March 31, 2024.
“The contribution of SIHPL to the company’s revenue for the year ending March 31, 2023, was nil.This transaction aligns with our focus on monetizing non-core assets, strengthening our balance sheet,” stated Piramal Enterprises in an exchange filing.
Piramal entered a strategic partnership with Shriram Group in 2013 after selling its pharmaceutical business in India to Abbott Laboratories for Rs 17,000 crore. With a portion of the proceeds, Piramal invested Rs 4,583 crore in three companies of the Shriram Group. SOT serves as the promoter of Shriram Capital, the overarching holding company of Shriram Group, recognized for its diverse financial products. Importantly, SOT has no association with our company’s promoters, promoter groups, or group companies. Additionally, the transaction does not fall under related party transactions.
In May 2013, Rs 1,636 crore was utilized to buy a 9.9% ownership in Shriram Transport Finance. In April 2014, Rs 2,014 crore was invested to obtain a 20% ownership in Shriram Capital. In Nov 2022, entities of the Shriram Group merged to form Shriram Finance. In June 2023, Piramal Ent divested its 8.34% stake in Shriram Finance.
“The contribution of SIHPL to the company’s revenue for the year ending March 31, 2023, was nil.This transaction aligns with our focus on monetizing non-core assets, strengthening our balance sheet,” stated Piramal Enterprises in an exchange filing.
Piramal entered a strategic partnership with Shriram Group in 2013 after selling its pharmaceutical business in India to Abbott Laboratories for Rs 17,000 crore. With a portion of the proceeds, Piramal invested Rs 4,583 crore in three companies of the Shriram Group. SOT serves as the promoter of Shriram Capital, the overarching holding company of Shriram Group, recognized for its diverse financial products. Importantly, SOT has no association with our company’s promoters, promoter groups, or group companies. Additionally, the transaction does not fall under related party transactions.
In May 2013, Rs 1,636 crore was utilized to buy a 9.9% ownership in Shriram Transport Finance. In April 2014, Rs 2,014 crore was invested to obtain a 20% ownership in Shriram Capital. In Nov 2022, entities of the Shriram Group merged to form Shriram Finance. In June 2023, Piramal Ent divested its 8.34% stake in Shriram Finance.
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