Shriram Finance shares in focus as Piramal Enterprises may sell 8.3% stake via block deals today

Shares of Shriram Finance will be in focus on Wednesday morning as Piramal Enterprises is likely to offload its entire 8.3 per cent stake in the non-banking financial company (NBFC) through block deals, a report suggested. Piramal Enterprises will sell 3.1 crore Shriram Finance shares in  block deals at a floor price of Rs 1,483 per share, which represents 4.9 per cent discount to Tuesday's closing price of Rs 1,559.45, CNBC reported. Morgan Stanley will reportedly be the broker for the deals.

Analysts said this development, along with previous stake sales by Apax Partners and TGP, will end the long awaited supply overhang on Shriram Finance. For Piramal Enterprises, the cash from stake sale could be used for inorganic opportunities or returned to shareholders.

On Monday, US private equity firm TPG sold its 2.65 per cent stake for Rs 1,400 crore in the NBFC to some investors in an open market transaction. In January this year, the UK-based private equity firm Apax Partners sold 4.3 per cent stake in Shriram Finance. Apax Partners held 4.63 per cent stake in Shriram Finance and was the single largest public shareholder.

Over 1,36,000 shares changed hands in three block deals in the price range of Rs 1,471.2 to Rs 1,476 rupees at a 5-5.3% premium to Friday's close. Shares of Shriram Finance, which became India's largest NBFC last year following the merger of Shriram Transport Finance Co and Shriram City Union Finance, climbed on Monday and Tuesday.

On Tuesday, Shriram Finance settled 6.11 per cent higher at Rs 1,559.45. Piramal Enterprises also climbed 6.01 per cent to 840.00

Promoters own a 25.1 per cent stake in the Chennai-based company, according to NSE data.