TPG Capital will dilute its stake in Shriram Transport Finance Company (STFC) over the next six to nine months, according to the subsidiary of the Rs 30,000-crore Shriram Group.

One of the potential buyers is Japan-based Orix Corporation. The transaction is estimated to be valued around Rs 3,000 crore, five times of the money invested by TPG five years ago, STFC managing director R Sridhar informed on Monday.

“By April-June 2012, TPG will sell its shares — after spending five years in the company," he said here. “We plan to facilitate the exit through a merger. So, there won’t be any impact on the operations of the company. It is just a technical merger."

In June this year, Business Standard had reported that TPG was planning to exit the company. Last week, STFC’s board of directors approved the scheme of arrangement for amalgamation of Shriram Holdings (Madras) Private Limited (SHMPL) with the company. Currently, SHMPL holds 41.27 per cent stake in trucks-focused Shriram Transport, one of the country’s largest vehicle financing company.

At present, TPG holds 49 per cent in the parent company. After the merger, the entity will have TPG having a 20 per cent stake.

The PE firm had invested Rs 550-600 crore, in two tranches, including $100 million in 2006 and the rest the following year, through warrants.

Sridhar declined to comment on the transaction estimate of the exit by TPG, but sources in the company said that it would be five times of their investment. TPG came into Shriram Transport by picking up a 49 per cent stake in SHMPL. The remaining 51 per cent is held by Shriram Promoters. SHMPL holds 42 per cent stake in STFC.

TPG’s other investments in the rest of firms under Shriram Group include 15 per cent stake in Shriram Capital, 49 per cent in Shriram Retail Private Holdings and 28 per cent in Shriram Citi Union Finance. In March, the private equity firm had acquired the assets of Vishal Retail for Rs 70 crore through Shriram Retail.

Overall, Shriram Capital Ltd, a company which is the holding company of all the financial services of Shriram Group, has increased its stake in STFC, by infusing around Rs 86.88 crore. The company bought the shares from open market. Through the infusion, Shriram Capital increased its stake from 0.66 per cent of the total shares of the company to around 1.50 per cent.

Shriram Transport, a truck financier, reported a 40 per cent growth in net profit to Rs 1,229.88 crore during the year ended March 31, 2011, as compared to Rs 873.12 crore, a year ago.

The company’s total income rose by around 20 per cent to Rs 5,429.65 crore from Rs 4,495.89 crore.

The NBFC arm of Shriram Group assets under management stood at Rs 36,183 crore, including Rs 19,866 crore of on-books and Rs 16,317 crore of off-books. “We expect 10 per cent growth in asset under management, from Rs 36,183 crore to Rs 40,000 crore by end of the current fiscal," Sridhar added.