American private equity firm TPG Capital has offloaded its 10 per cent stake in Shriram Transport Finance Limited (STFL), for nearly Rs 1,600 crore ($300 million).

The trade price of the shares, which were sold through a bulk deal, was nearly six times higher than the price at which they had been bought at. The biggest buyers included Mauritius-registered Centaura Investments, Swiss Finance Corp and Sanlam Life.

South African financial services group Sanlam brought 3.7 per cent of the sold stock for Rs 650 crore. The stake sale was handled by Goldman Sachs.

STFL is a part of the Rs 60,000-crore Shriram Group.

According to KPMG, there have been purchasers for less than 10 per cent of the total $31.5 billion of PE investment made in Indian market between the years 2006 and 2008.

The stake sale is seen as a strong hint of revival of market private equity firms. The sector had long been facing difficulty in finding buyers for their stakes due harsh economic conditions.

Mohit Ralhan, managing partner at private equity firm Indus Balaji, "It's very encouraging to see fantastic PE returns in difficult times like this."

TPG had bought 20 per cent stake in Shriram Transport Finance Limited for around Rs 500 crore in 2006. Following the recent sale, it now holds the remaining 10 per cent stake in the company, which it would sell in the coming months.