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.
Also read: Crude oil prices slip as economic slowdown worries outweigh supply fears
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.
Also read: Indians buying more real estate abroad: Outbound capital doubles on overseas commercial property purchase
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.