Shriram Finance hits lifetime after block deal; Piramal Enterprises also zooms 15%

Shares of Shriram Finance hit a lifetime high of Rs 1,764.45 apiece on the BSE in the early morning trade after Piramal Enterprises sold its entire stake in Shriram Finance. As per Zee Business, Piramal Enterprises sold its entire 8.3 per cent stake in Shriram Finance today via a block deal. The floor price of the block deal, as per the report, was fixed at Rs 1,483 apiece, which is a 5 per cent discount on the last closing price.

At around 10:00 AM, shares of Shriram Finance traded at 1,681.55 apiece, up 7.83 per cent on the BSE.

Shares of Piramal Enterprises also touched the upper band at Rs 922.35 apiece on the NSE. At the time of filing the report, the scrip was trading at Rs 927.5 apiece, up 10.61 per cent.

Both stocks have rallied for three consecutive sessions; Shriram Finance stock has gained over 18 per cent and Piramal Enterprises stock has risen over 17 per cent.

What should investors do?

According to Zee Business Managing Editor Anil Singhvi, at the current levels, there is no buying opportunity in Piramal Enterprises or Shriram Finance.

On the other hand, Systematix has given a ‘buy’ call on Piramal Enterprises for a target of Rs 1026 apiece which implies an upside of 22.3 per cent from Tuesday’s closing price.

Motilal Oswal has also given a ‘buy’ on Piramal Enterprises for a target price of Rs 1000 a share, which translates to an upside of 19.2 per cent from Tuesday’s closing price.

"With a high capital adequacy of 31 per cent and proceeds from a potential stake sale in Shriram Finance, Piramal Enterprises will have its task cut out to decide whether to utilise the excess capital on the balance sheet for any inorganic opportunities or find means to return it to shareholders, the Motilal Oswal report read.

Piramal Enterprises' share price history

So far in 2023, Piramal Enterprises stock has climbed over 12 per cent against the Nifty50’s rise of over 3 per cent.

Shriram Finance share price: Past performance

So far in 2023, Shriram Finance stock has climbed over 21 per cent sharp rise against the Nifty50’s rise of over 3 per cent.

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