U.S.-based TPG Capital Management LP has paused its plan to sell a 10% stake in Shriram Capital Ltd. as India's shadow banking crisis continues to affect valuations, Business Standard reported Oct. 11, citing people with knowledge of the matter.
Deliberations are ongoing and the proposed sale of the private equity firm's stake will likely resume when appropriate, the sources said. One source said that the sale will only likely resume in the next fiscal year, which begins April 1, 2020.
TPG Capital and Piramal Enterprises Ltd. have been looking to sell a collective 30% stake in Shriram Capital. Investors that are reportedly seeking to buy the combined stake include CVC Capital Partners Ltd., Carlyle Group LP and Blackstone Group Inc.
The sellers were seeking a valuation of 80 billion Indian rupees for the 30% stake, the sources said.
A representative for TPG Capital declined to comment on the matter, the publication reported.
As of Oct. 11, US$1 was equivalent to 70.93 Indian rupees.