Shriram Transport on good roads

Shriram Transport Finance opened for trade today morning with a gap on the upper side of over Rs.20, hitting an intra day high of Rs.754. Though it has come of f these levels, it remains strongly in the green, over 1.5%.

This stock and the other Shriram group stocks, all in the green following news that Piramal Enterprises has agreed to buy 20% stake in Shriram Capital, which is the holding company for the Shriram group, controlling Shriram Transport and Shriram City Union. Piramal will be buying this stake at Rs.2014 crore, which is the right direction for Piramal to increase his foothold in the financial services sector. Last peat, Piramal had bought 9.9% stake in Shriram Transport.

Shriram Capital owns 25% in Shriram Transport, 30% in Shriram City Union, 100% owner of Shriram Asset Management. And Shriram Capital is itself owned 64% by Shriram Ownership Trust, 26% by Sanlam Financial Services and 10% by TPG capital.