Chennai, Jun 21 (IANS): Non banking finance company (NBFC) Piramal Enterprises Ltd on Wednesday said it has sold its 8.34 per cent stakes in Shriram Finance Ltd.

In a regulatory filing, Piramal Enterprise said it has sold its entire direct investment of 8.34 per cent (3,12,21,449 shares) in the fully paid-up share capital of Shriram Finance to third party investors, on the floor of the stock exchange.

Piramal Enterprises - part of the Piramal Group having interests in pharmaceuticals, real estate apart from financial services - bought stakes in the South-based financial services group companies - Shriram Transport Finance Ltd in 2013, Shriram Capital Ltd (Unlisted) in 2014 and Shriram City Union Finance Ltd in 2018.

In 2021, in a composite scheme of arrangement and amalgamation, the Shriram Group announced the merger of its two NBFCs- Shriram City Union Finance and Shriram Capital Ltd - the listed company Shriram Transport Finance.

Subsequently, Shriram Transport was renamed as Shriram Finance and the latter became India's largest NBFC.

Piramal Enterprises will mop up about Rs 4,630 crore by selling its investment in Shriram Finance at a price of about Rs 1,483 per share.

Shriram Finance's share closed at Rs 1,734.20 on Wednesday.

Piramal Enterprises is the second major exit for the Shriram Group. On June 19, TPG India Investments sold 2.65 per cent stake in Shriram Finance at a price of Rs 1,401 per share.