May 10 (Bloomberg) -- Indian billionaire Ajay Piramal acquired a 10 percent stake in Shriram Transport Finance Ltd., a domestic truck-financier, for 16.52 billion rupees ($303 million) to expand his financial services business.
Piramal Enterprises Ltd. paid 723 rupees apiece for 22.84 million shares of Shriram Transport, according to an exchange filing today. Piramal Enterprises bought the stake from TPG Capital, Chairman Piramal told reporters in Mumbai.
Piramal, who sold his pharmaceuticals business to Abbott Laboratories for $3.8 billion in 2010, is seeking to expand his unit that funds infrastructure and property projects, and runs a property venture capital fund. Financial services contributed about 11 percent to Piramal Enterprises’ revenue, data on the company’s website show.
Shriram Transport shares jumped 4.2 percent to 765 rupees at 12:37 p.m. in Mumbai, heading for the highest price since Feb. 7. Piramal Enterprises gained 0.9 percent to 572 rupees. UBS AG advised Piramal on the transaction.
TPG Capital in February sold about half of its 20 percent stake in Shriram Transport for about 16.6 billion rupees at 715 rupees apiece, a person with knowledge of the matter said Feb 21. TPG bought shares in Mumbai-based Shriram for 112.75 rupees each in 2006, data compiled by Bloomberg show.
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