Private equity group Apax Partners has emerged as a front-runner to pick up a significant minority stake of 20% in Shriram City Union Finance, the retail lending arm of the Shriram Group, from its current private equity owner, buyout specialist TPG Capital.
TPG has been looking to monetize its 2-year-old investment for the past few months. Apax will make 3.7 times its original investment in absolute terms. As far as Shriram is concerned, the current market value of TPG for 20.34% stake is a2,478 crore, over twice what it had invested in August 2013, ignoring the time value of money. TPG had picked up a 22% stake for Rs 1,207 crore then.
Shriram City Union Finance has presence in the following business segments - loan Against Gold (LAG), Small Business Finance Loans (SBF), Auto Loans, 2-Wheeler loans, Personal Loans and Consumer Durables Loans.
Company Name | CMP |
---|---|
Bajaj Finance | 6727.15 |
Shriram Finance | 2320.15 |
Aditya Birla Capital | 218.80 |
SBI Cards AndPayment | 718.80 |
Chola Invest & Fin. | 1290.25 |
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