According to bulk deal data available with the exchanges, TPG India Investments has offloaded about 99.18 lakh shares or 2.64% stake in the company.
The transaction was done at a weighted average price of Rs 1,401 per share and the PE firm bagged Rs 1,389 crore. It was unclear who the buyers were in the transaction.
Shriram Finance is a majority public-owned company with 74.49% stake, while the rest of 25.51% is owned by promoters. Among the public shareholders, mutual funds have about 6.04% stake, while foreign investors have about 44.33%.
Shriram Finance provides consumer finance services, offering automobile, commercial vehicle, business, and gold loan services. Shriram Finance was formed following the merger of Shriram City Union Finance and Shriram Capital into Shriram Transport Finance.
On Monday, the company’s shares closed nearly 5% higher at Rs 1,471 on NSE. So far this year, the stock is up 6.15%.
In the March quarter, Shriram Finance reported a 20% rise in net profit at Rs 1,308 crore. The company’s net interest income stood at Rs 4446 crore in the said period.Technical outlook:
Technically, analysts say the stock has formed a trend reversal pattern-Doji tad below its prior supply zone of Rs 1,510-1,535.
“In the past, the stock reversed downwards after testing that zone and tested its long-term moving averages subsequently. The key technical indicators oscillated around the overbought zone,” said Jatin Gohil, Technical and Derivative Research Analyst at Reliance Securities.
“As per the current set-up, history may repeat itself, which could drag the stock towards its long-term moving averages (100-day and 200-day SMAs), which are placed between Rs1,310-1,298. However, a stable move above that supply zone may break the jinx and support an exponential rise towards Rs1,650-1,700 zone,” he added.