Piramal Enterprises probable to give off IL&FS in all stock deal to create Rs 15000 crore company

Q: As per the plan, Piramal Enterprises Limited will carve out its financial services business and merge it with IL&FS in an all stock deal to create about Rs 15000 crore company,

Ramesk Polekar, Mumbai

10th September 2015

Real estate News in Mumbai

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piramal enterprises ltd

ajay piramal

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Replies (3)

Right Dhiraj,
Such deals will continue in both financial services and infrastructure by the company to enable better net worth in operating companies. A merger of this size will give IL&FS enough capital from Piramal for future growth.

Lalit Verma, Mumbai

10th September 2015

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Good morning all!!!!
It is also come to know that the matter was also discussed by the investment committee of LIC, the largest shareholder in IL&FS with 25.34% holding. The PEL board is shown interest to meet soon to take up the proposal.

It is expected that this merger will give Piramal a series of 10 infrastructure utilities including a ready-to-start 600 mw power plant in Cuddalore that can be expanded to 3600 mw, India's largest wind energy company generating 1000 mw and 30 operational toll road projects.

ujwal nikam, Pune

10th September 2015

Comment

At the same time, this deal will also make Piiramal to gain control of engineering and construction firm Maytas Infrastructure, infra financing company IL&FS Financial Services and a private equity fund with Rs 300 crore of assets under management. IL&FS has a total debt of about Rs 65000 crore.

Dhiraj,

10th September 2015

@Dhiraj,
It is also come to know that Piramal investing in financial services and contributing 18% to PEL's revenues of Rs 5123 crore as of March 31, 2015, with healthcare and information management contributing 62% and 20% resp[ectively,

ujwal nikam, Pune

10th September 2015

Earlier, PEL has given Rs 4766 crore to real estate companies and road developers, and manages Rs 8441 crore as part of substitute assets invested in the real estate sector through 12 funds. The company has been investing in financial services after he sold his money-spinning formulations business to Abbott for Rs 17484 crore in 2010. Between 2013 and 2014, Piramal, 60, a graduate of the Jamnalal Bajaj Institute of Management Studies, invested Rs 4583 crore in the Chennai based financial conglomerate Shriram Group for a minority stake.

Dhiraj,

10th September 2015

Billionaire Ajay Piramal owned Piramal Enterprises is within notable distance of taking control of Infrastructure Leasing & Financial Services The IL&FS board discussed the structure of the proposed deal a few weeks ago. The deal would give birth a company with a net worth of Rs 20000 crore and hold ratio of 1:3. IL&FS has about Rs 18000 crore of assets under management.

Joydeep D,

10th September 2015

Comment

Right Joydeep!!!!
If this deal sealed, will make Piramal the largest share holder and promoter of the merged company and a formidable power in infrastructure development and finance. Piramal owns 53% share in PEL IL&FS' overseas investors, which include Abu Dhabi Investment Authority and Japan's financial services giant Orix Corporation, as well as local investors HDFC, State Bank of India and Central Bank of India are believed to be in favor of the moved merger.

Dhiraj,

10th September 2015