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market | IST

Shriram Transport Finance shares fall 6% after Piramal Enterprises sells entire 10% stake in company

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CNBC-TV18 reported that about 10 percent equity worth Rs 2,305 crore exchanged hands on NSE at around Rs 1,000-1,023 per share.

Shriram Transport Finance shares fell over 6 percent on Monday after Piramal Enterprises sold its entire stake in the company. CNBC-TV18 reported that about 10 percent equity worth Rs 2,305 crore exchanged hands on NSE at around Rs 1,000-1,023 per share.
Piramal Enterprises, in an exchange filing said, "The company has sold its entire direct investment of 9.96 percent in the fully paid-up share capital of Shriram Transport Finance Company Ltd to third party investors on the floor of the stock exchange."
The stock fell as much as 6.5 percent in opening trade at Rs 1,011 per share on BSE. At 10:05 AM, the stock was trading 3.8 percent lower at Rs 1,039.95 as compared to 0.5 percent (199 points) fall in BSE Sensex at 39,253. The stock has fallen over 16 percent in 2019 and 29 percent in the last 1 year.
Piramal Enterprises held a 9.96 percent stake in the non-banking finance company as of March 31, 2019. It had bought that stake at Rs 723 per share in 2013. The Rs 2,305 crore received from stake sale is 5 percent of Piramal Enterprises' total market capitalisation.
For Q4, Shriram Transport Finance reported a 22.4 percent fall in its net profit at Rs 746.04 crore as against Rs 961.76 crore in the same period of 2017-18, it said in a regulatory filing. Total income in March quarter rose to Rs 3,880.43 crore from Rs 3,605.47 crore in the year-ago period. The company's board of directors has recommended a final dividend of Rs 7 per equity share, subject to shareholders approval in the ensuing 40th Annual General Meeting.
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