Shares of Piramal Enterprises and Shriram Finance were locked in their respective 10 percent upper circuit on Wednesday amid media reports that the former will sell an 8.34 percent stake in the latter for ₹4,360 crore.
The floor price of this stake sale has been set at ₹1,483, 5 percent lower than its Tuesday's closing of ₹1,559.85. Morgan Stanley is the sole broker for the block deal which is likely to happen today.
In today's deals, Piramal Enterprises rallied 15 percent to ₹964.40, whereas Shriram Finance surged 13.1 percent to its 52-week high of ₹1,764.45.
Shriram Finance has been in the green for 3 sessions straight since Monday. The stock rose 5 percent on Monday (June 19) and 6.11 percent on Tuesday (June 20). Just in June, the stock soared over 24 percent, rising for the 4th straight month. Meanwhile, it added 5 percent in May, 6 percent in April and 4.6 percent in March. However, it shed 6.5 percent each in Jan and Feb.
Overall in 2023 YTD, the stock is up 29 percent and 37 percent in the last 1 year.
Piramal Enterprises, on the other hand, has also been in the green for 3 sessions straight, up 5.7 percent yesterday (June 20) and 1.4 percent On Monday (June 19). The stock has surged 22 percent in June so far expending gains after a 4.6 percent jump in May and an 8.6 percent rise in April. However, the stock shed 12 percent and 10 percent, respectively in March and Feb. It was up 3.8 percent in Jan.
Overall in 2023 YTD, Piramal has gained 15.5 percent, however, it has lost 3.4 percent in the last one year.
Earlier this week, on Monday, Shriram Finance witnessed another major block deal where TPG India Investments offloaded its entire 2.65 percent stake in the company for ₹1,390 crore.
Meanwhile, in January this year, UK-based private equity firm Apax Partners also sold its entire 4.3 percent stake in Shriram Finance.
In the March quarter, Shriram Finance posted an 18 percent YoY jump in its net profit at ₹1,288 crore while its consolidated net interest income (NII) surged 72 percent YoY to ₹4,533 crore.
Meanwhile, Piramal Enterprises reported a net loss of ₹196 crore for the quarter ending March 31, 2023, versus a net profit of ₹109 crore in the year-ago period. Its consolidated revenue from operations also declined 9 percent to ₹2,132 crore in Q4FY23 as against ₹2,347 crore in Q4FY22.
