By Malvika Gurung
Investing.com -- Shares of the financial major Shriram Finance (NS:SHMF) hit a 15% upper circuit and a new 52-week high of Rs 1,793.55 apiece on Wednesday despite Piramal Enterprises (NS:PIRA) selling its entire stake in the company.
The leading Non-Banking Financial Company (NBFC) Piramal Enterprises has offloaded its entire direct investment of 8.34% in Shriram Finance to third-party investors through block deals on the stock exchanges.
At 11:55 am, shares of Shriram Finance traded 9.3% higher at Rs 1,704.55 apiece, and those of Piramal Enterprises jumped 12.4% to Rs 942.2 apiece.
The floor price of the block deal made on Wednesday was fixed at Rs 1,483/share, which is at a 5% discount to Shriram Finance’s closing price on Tuesday.
Piramal Enterprises’ stake sale of 8.34% in Shriram Finance is expected to have led to a transaction of Rs 4,630.14 crore.
As per Shriram Finance’s shareholding pattern as on March 31, 2023, Piramal Enterprises held a total of 3,12,21,449 equity shares of the financial company, translating to a 10.2% stake.
Morgan Stanley (NYSE:MS) India acted as the sole broker of the block deal, stated reports.