Shriram Transport Finance shares tank as Piramal Enterprises exits the company

As on March 31, 2019, Piramal Enterprises held 2.26 crore shares amounting to 9.96 per cent stake in Shriram Transport Finance Company. (Website image)

Piramal Enterprises sells its entire stake of around 10 per cent in Shriram Transport Finance. As on March 31, 2019, Piramal Enterprises held 2.26 crore shares in the asset financing company.

Shares of Shriram Transport Finance Company tanked around 8 per cent on Monday after  Piramal Enterprises offloaded its entire stake in the asset financing firm for about Rs 2,305 crores.  While the shares of Shriram Transport Finance fell by 7 per cent to Rs 1015.40 per share on BSE, its shares plunged about 8 per cent to 1,000 per share on the NSE. Shares of Piramal Enterprises also fell around 4 per cent to Rs 1,990.20 per share on the BSE, whereas on NSE, its shares slumped nearly 4 per cent to Rs 1,990 per share.

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Piramal Enterprises held around 10 per cent stake amounting to 2.26 crore shares in the non-banking finance company as on March 31, 2019. The amount of Rs 2,305 crore received from the offloading of shares is 5 percent of Piramal Enterprises’ total market capitalisation. “The company has sold its entire direct investment of 9.96 per per cent in the fully paid-up share capital of Shriram Transport Finance Company to third party investors on the floor of the stock exchange,” Piramal Enterprises said in an exchange filing.

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In the last quarter of FY19, the non-banking finance company Shriram Transport Finance reported a 22.4 percent fall in its net profit at Rs 746.04 crore as compared with Rs 961.76 crore in the corresponding period of 2017-18. THe company’s total income in Jan-Mar surged to Rs 3,880.43 crore from Rs 3,605.47 crore in the same period of the previous year. Its board of directors has recommended a final dividend of Rs 7 per equity share, subject to shareholders approval in its upcoming fortieth annual general meeting.