ChrysCapital sells partial stake in Indian finance company

The India-focused private equity firm held an approximate 17.5 percent stake in Shriram Transport Finance Company before it sold a less than 5 percent stake this week.

Delhi-headquartered ChrysCapital has sold a less than 5 percent stake in Shriram Transport Finance Company to ICICI Prudential Life Insurance for INR3 billion ($63 million; €46 million), according to a Shriram Transport Finance Company spokesman.

ChrysCapital declined to comment. ICICI Prudential Life Insurance did not reply to requests for comment at press time.

Established in 1979, Shriram Transport Finance Company provides commercial vehicle finance to small road transport operators. As of March, its revenues for the year stood at approximately INR3.7 trillion. Headquartered in Mumbai, the company has 470 branches across India. It is the flagship company of Shiriam Group, an Indian financial services conglomerate.

Shriram Transport Finance’s shares on India’s National Stock Exchange were trading at INR294 per share at press time.

Before the sale, ChrysCapital held a stake of approximately 17.5 percent in the company, the spokesman said. The sale was made through Uno Investments, an investment vehicle owned by ChrysCapital’s ChrysCapital III.

In 2008, ChrysCapital sold a roughly 1.5 percent stake in the company, according to the spokesman. ChrysCapital acquired an approximately 21 percent stake in Shriram Transport Finance in 2005.

In 2007, ChrysCapital raised $1.25 billion for its fifth fund, surpassing its target of $1 billion. The firm invests between $30 million and $300 million per deal and targets sectors including business services, consumer goods and services, financial services, healthcare and pharmaceuticals, infrastructure and manufacturing.

ChrysCapital prefers growth investments in private and listed companies, special situations, co-investments with other private equity firms as well as management buyouts and buy-ins. Its previous investments include private bank Axis Bank, optical storage media maker Moser Baer and freight wagon manufacturer Titagarh Wagons.