Apax Partners sells 4.3% stake in Shriram Finance, 4 global funds pick up stake

UK-based private equity firm Apax Partners sold 4.3% stake in Shriram Finance Ltd through the open market on Friday, according to the data on exchanges. With this, the private equity firm has brought its stake to negligible levels in the non-bank finance company.

The private equity firm sold 1,59,93,734 shares on the BSE at Rs 1,300 apiece, aggregating to Rs 2,079 crore, bulk deals data showed.

The sale price was at a nearly 1% discount to Thursday’s closing price of Rs 1,312.65. On Friday, shares of Shriram Finance ended 2.2% down at Rs 1,283.20. On Thursday, news reports had said that Apax Partners is looking at exiting the NBFC company.

On Thursday, reports were doing the rounds that Apax Partners is looking at exiting the NBFC company. Until Thursday, Apax Partners held 4.63% stake in Shriram Finance and was the single largest public shareholder.

Shares of the company have given over 13% returns in 2022, and have outperformed the benchmark Sensex which has gained more than 4% in the same period. Besides Apax Partners, TPG Capital is another foreign entity, holding 2.65% stake in Shriram Finance.

Among foreign portfolio investors, Chicago-based hedge fund Wishbone Fund holds 1.21% stake, JPMorgan owns 1.30% stake, and Government Pension Fund Global holds 1.84% stake.

Through separate deals, four foreign funds bought shares of Shriram Finance on Friday. Government Pension Fund Global raised its stake by acquiring 300,000 shares through a bulk deal.

Further, BNP Paribas bought 1,38,461 shares, Fidelity Funds Mauritius bought 66,27,561 shares, and Societe Generale purchased 2,76,922 shares.

Post the sale by Apax Partners, Life Insurance Corporation of India is the single largest public shareholder with a 4.4% stake. Among mutual funds, HDFC Mutual Fund and Mirae Asset Mutual Fund together hold 4.04% stake in Shriram Finance.

Two domestic funds ICICI Prudential Life Insurance Co and Aditya Birla Sun Life Insurance Co bought 5,76,923 and 77,000 shares, respectively, through separate deals.

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