Shares of Shriram City Union Finance Ltd rose as much as 5.7 per cent to a record high after Piramal Enterprises Ltd agreed to take a 9.99 per cent stake in the non-banking financial company.
Piramal's investment is aimed as a strategic involvement rather than a passive financial investor, boosting Shriram's outlook, said an analyst with a leading domestic brokerage.
Piramal has been buying shares in other companies belonging to the Shriram Group.
Last month, it agreed to buy a 20 per cent stake in unlisted Shriram Capital for $334 million. Last year, Piramal bought a 9.9 per cent stake in Shriram Transport Finance Co Ltd.
Copyright: Thomson Reuters 2014
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