With Piramal’s exit, life comes full circle for Shriram Group
Live MintBillionaire Ajay Piramal’s decision to finally bow out of Shriram Capital caps years of unsuccessful attempts to harness Shriram Group’s key strengths to the advantage of his own financial services business. On Tuesday, Shriram Capital Ltd, the holding company of Shriram Group, said Piramal Enterprises Ltd and private equity firm TPG Capital have decided to sell their stakes in the company. “Despite taking management control at the top, Piramal Group had persistently struggled with managing the vast workforce of Shriram Group,” said the first person cited above, adding “a large portion of group insiders were not favourably disposed towards corporate control given the group’s long-standing history where the ownership had rested with the employees via the Shriram Ownership Trust, an employee trust which held 45% stake in Shriram Capital.” With the impending exit of Piramal and TPG, the ownership is poised to revert to the employees yet again. Piramal’s decision to sell stake in Shriram Group companies is also linked to the tightening of liquidity in the short-term money market in the aftermath of the collapse of Infrastructure Leasing & Financial Services.
History of this topic
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