New Delhi, Jan 28 Piramal Enterprises has entered into share purchase agreement to sell its entire direct investment of 20 per cent of the fully paid-up equity share capital held in Shriram Investment Holdings Private Limited (formerly known as Shriram Investment Holdings Limited) (SIHPL) to Shriram Ownership Trust (SOT), for a consideration of Rs 1,440 crore.
The Transaction is subject to receipt of requisite regulatory approvals by SOT and expected to be completed prior to March 31, 2024.
The contribution of SIHPL in the revenue of the Company for the year ended March 31, 2023 was Nil.
"This Transaction is aligned with our focus on monetizing non-core assets. The proceeds from the Transaction will further strengthen our balance sheet," Piramal Enterprises said.
SOT is the promoter of Shriram Capital Private Limited, which is the overarching holding company of Shriram Group.
Shriram Group offers a wide range of financial products in commercial vehicle financing, retail financing, chit funds, housing finance, life insurance, general insurance, stockbroking, distribution of financial products, and wealth advisory through its entities. SOT does not belong to any of the Company's promoter /promoter group/ group companies.
The Transaction does not fall within related party transactions, Piramal Enterprises said.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor