U.S. private equity firm TPG Capital raised about $300 million by selling its roughly 10 percent stake in Indian commercial vehicle financier Shriram Transport Finance Co Ltd to India’s Piramal Group, generating a near seven times return on a 2006 investment.
Piramal Enterprises said it bought a 10 percent stake in Shriram Transport through a block deal for about 16.52 billion Indian rupees ($305.21 million), or 723 per share.
Ajay Piramal, chairman of Piramal Enterprises, told reporters the stake was bought from TPG.
TPG, which manages about $55 billion globally, invested a little more than $100 million in Shriram Transport’s parent company, Shriram Group, in 2005. A year later it took a 20 percent stake in Shriram Transport against its investment in Shriram Group, valued at 113 rupees per share, according to a source with direct knowledge of the matter.
TPG declined to comment.
In February, TPG sold half its stake in Shriram Transport to a clutch of institutional investors and raised about $305 million.
Piramal is primarily engaged in the pharmaceutical industry and has interests in financial services and manages a property fund.
Shares in Shriram Transport were up as much as 5.7 percent, to 776.50 rupees, after the deal.
UBS advised Piramal on the deal.
Source: PE Hub