Ajay Piramel-led Piramal Enterprises and American private equity firm TPG are looking to exit Shriram Capital, said the company (Shriram Capital). It also said that going forward, the group firms will be managed by the Shriram Ownership Trust (SOT), which will actively work with Sanlam, the partner in Shriram Capital and insurance ventures.

Calling both TPG and PEL valuable partners and investors of the group, Shriram Capital, which is the holding company, said it has been receiving queries from the investors, investment bankers and analysts on the potential exit as well as possible restructuring initiatives.

“Both PEL and TPG are evaluating the feasibility of selling their respective shareholding in Shriram Capital,” it said in a regulatory filing on Tuesday.

While PEL’s evaluation of exit from Shriram Capital is a part of its long-term strategy to fund growth of its financial services business, TPG’s evaluation of an exit is consistent with its investment review practices, it added.

PEL had on Monday said it is looking at selling its entire 20 per cent stake in Shriram Capital. DV Ravi, Managing Director-Shriram Capital, and Managing Trustee, SOT said

Shriram Capital will evaluate various restructuring initiatives such as rationalisation of holding structure including consolidation, acquisition, restructuring and combinations between the various entities in the group in the form of mergers or demergers.

“These initiatives will help optimise cost, drive synergies, cut out intermediate layers with a view to enhance value to the various stakeholders,” he said.

 

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