TPG-backed Shriram Capital has raised its holding in the group’s listed consumer finance firm Shriram City Union Finance to 61.8 per cent by converting warrants into equity. Shriram Capital had subscribed to fresh shares and convertible warrants in March 2012, and completed the conversion of the securities into shares in two tranches over the past two months.
The promoters held 53 per cent in Shriram City Union Finance as of December 31, 2011. This rose to 54.95 per cent through the preferential allotment of shares in March 2012. But over the past few weeks, the firm converted all the warrants into shares, hiking its stake further.
Shriram Capital ploughed in around Rs 467 crore to raise its stake in the firm. It picked up the shares and the warrants at Rs 570 apiece, as against the current market price of Rs 925 a share for Shriram City Union Finance.
Some of the existing PE investors in Shriram City Union Finance include Norwest Venture Partners and Bessemer Venture Partners.
Shriram Capital, the key holding arm of the Chennai-based Shriram Group, is backed by TPG, which has had multiple exposures to the group’s various businesses including Shriram Transport Finance, which it exited recently, besides partnering in the retail venture after a buyout of the business of Vishal Retail a few years ago.
(Edited by Sanghamitra Mandal)