No differences with TPG, says Shriram Group

Vishal Retail owners, Shriram Group has cleared doubts

about their souring relationship with US-based partner TPG Capital, a private equity company. There were rumours about a possible break-up between the two over Shriram’s inability to invest fresh funds in the debt-ridden Vishal Retail. The Rs 30,000-crores Shriram Group announced that their partnership with TPG Capital was doing well and there were no issues between them. According to the Shriram Group, it never had a problem of raising funds and apart from other financial institutions, 23 PE firms including TPG have so far invested in the group.

Ending rumours, TPG recently picked up a 15 per cent stake at the cost of Rs 450 crores in Shriram Properties, the realty arm of the Shriram Group. It also has a 15 per cent stake in Shriram Capital, 49 per cent stake in Shriram Retail Private Holdings and 28 per cent shareholding in Shriram Citi Union Finance.

The last global recession hit Vishal Retail’s business badly and its debt pressure mounted to crores of rupees. This led the lenders including State Bank of India, HDFC Bank and ING Vysya Bank among others to sell its assets to TPG and Shriram. After mutually acquiring Vishal Retail’s assets for Rs 70 crores promoter Ram Chandra Agarwal, both agreed to revive and bring back the retail chain into healthy situation.