Piramal Enterprises rises on plan to acquire 20% equity stake in Shriram Capital

Piramal Enterprises is currently trading at Rs 603.00, up by 7.15 points or 1.20% from its previous closing of Rs 595.85 on the BSE. The scrip opened at Rs. 600.00 and has touched a high and low of Rs 624.80 and Rs 600.00 respectively. So far 23867 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 648.30 on 02-Sep-2013 and a 52 week low of Rs. 476.00 on 25-Jun-2013. Last one week high and low of the scrip stood at Rs. 599.00 and Rs. 539.10 respectively. The current market cap of the company is Rs. 10282.17 crore. The promoters holding in the company stood at 52.94% while Institutions and Non-Institutions held 30.57% and 16.48% respectively. Piramal Enterprises has agreed to acquire an effective 20% equity stake in Shriram Capital, a financial services company, for an aggregate consideration of Rs 2,014 crore. Shriram Capital (SCL) is the overarching holding company for the financial services and insurance entities of the Shriram Group, created with the primary objective of optimizing the synergies across the group’s entities. Shriram Capital’s operating entities, have an overall customer base in excess of 9 million, more than 53,000 employees across 2,600 offices, net profit of Rs 800 crore with assets under management (AUM) in excess of Rs 78,000 crore. Piramal had invested Rs 1,636 crore in May last year to acquire 9.9% equity in Shriram Transport Finance Company, one of the listed NBFCs forming part of the Shriram Group. UBS was the sole financial advisor to Piramal for this transaction. Amarchand & Mangaldas & Suresh A. Shroff & Company acted as sole legal advisors to Piramal Enterprises. Trilegal acted as sole legal advisor to Shriram Capital.