Orix Corp eyes TPG Capital's 20% stake in Shriram Transport Finance Company

23 May 2011 Evaluate

Orix Corp, in a move to boost its investments in overseas markets such as India and China, which controls a stake of 23% in Infrastructure Leasing and Financial Services (IL&FS), is now in talks with TPG Capital to buy Its 20% stake in India's largest asset based non-banking finance company, Shriram Transport Finance Company, in a deal which is estimated to be worth over Rs 3,000 crore. This comes right after an attempt by the Singapore government's sovereign fund Temasek to acquire TPG's stake botched.

TPG Capital bought a 20% stake in Shriram Transport for Rs 123 per share in 2006. However, the private equity firm wants to exit Shriram Transport Finance and invest in other business of the Shriram Group. It has plans to invest Rs 450 crore in Shriram Properties. The other entities of Shriram group in which TPG has holdings are Shriram Retail Private Holdings (49%) and Shriram City Union Finance (28%)

Orix manages assets of over $60 billion and operates in segments such as leasing, real estate, investment banking and automobile leasing besides financial services.

Shriram Transport Finance Company is the largest player in commercial vehicle finance. It lends finance for pre-owned trucks to new trucks.

Shriram Finance Share Price

2922.95 51.20 (1.78%)
23-Dec-2024 09:22 View Price Chart
Peers
Company Name CMP
Bajaj Finance 6920.75
Shriram Finance 2922.95
Aditya Birla Capital 187.00
SBI Cards AndPayment 693.30
Mah & Mah Finl. Serv 270.05
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