TPG makes $301m partial exit from India’s Shriram Transport

In February TPG had sold another 9.9% of its 20.28% stake in STF for about INR16.6 billion ($303 million), at INR715 per share for 23.15 million shares. With this latest sale, TPG has almost fully exited its investment in Chennai-based Shriram Transport, which gives loans to truck drivers and small businesses.

TPG acquired the stake in STF in 2012, after the company merged with parent holding company Shriram Holdings Madras, in which TPG's Newbridge India Investments II had bought a 49% stake in 2006.

TPG still holds investments in other Shriram businesses. It owns around 15% of Shriram Capital, the holding company of Shriram Group. In 2008, the private equity firm purchased a 49% stake in Shriram Retail - which controls Shriram Credit Union Finance - for a reported $120 million. TPG also invested $100 million in Shriram Properties in June 2011, taking a 15% holding.

Shriram Transport made a profit after tax of INR13.6 billion for the financial year ending March 31, up by 8.20% from the previous year.

Ajay Piramal, Chairman of Piramal Enterprises, said: "[The] acquisition of this stake in Shriram Transport is in line with our strategy for building our presence in financial services sector and we see long term shareholder value creation from this stake acquisition."

Piramal's financial services business include an non-bank financing company (NBFC) for lending to real estate and education, a real estate focused private equity company - IndiaREIT - and a special vehicle for investments in infrastructure sector.

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• Topics
• South Asia
• Exits
• Financials
• India
• TPG Capital
• Financial Services
• Exit