TPG Capital, the renowned private equity group from the US, has raised nearly US$300 million through the sale of 10% of its shareholdings in Shiram Transport Finance Co Ltd. The sale of the Indian commercial vehicle financier was made to the Piramal Group of India.
The sale generated about seven times the returns from its investment made in 2006. The price per share was at 723 rupees per share totalling 16.52 billion rupees or US$305.21 million through a block deal. The chairman of Piramal Enterprises, Ajay Piramal, confirmed the sale from TPG.
TPG currently has a global portfolio worth US$55 billion initiated the investment of a little over US$100 million in the parent company of Shiram Transport, Shiram Group back in 2005. In 2006, the buyout firm took a 20% stake in Shiram Transport against its investment in Shiram Group at a value of 113 rupees per share.
TPG Capital declined to make any comment.
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