This Article is From Jan 12, 2014

Industrialist Ajay Piramal's stake deal with Shriram Cap set to materialise


Billionaire industrialist Ajay Piramal's bid to pick up a stake in Shriram Capital will be fructified this quarter, a top official from the diversified financial group has said.

"We have been talking to him (Piramal) and we believe this quarter the deal should happen. The issue is more on how much percentage of stake we should give to him. But in this quarter it will be definitely concluded," G S Sundararajan, group director, Shriram Group, told PTI.

Mr Piramal is already associated with the group after he picked up private equity major TPG's 10 per cent in used-commercial vehicles financier Shriram Transport Finance last year.

Mr Sundararajan said henceforth, the group, which has seen the participation of many a private equity firm in the past, will focus more on strategic investors rather than PEs.

The group executive, who is also the managing director of Shriram City Union Finance, the SME, two-wheelers, gold and housing financier of the group, said the group will not need any fresh capital for the next 18 months.

The home loan business, which was started two years ago with a capital of Rs 270 crore from the parent company, may need some capital over the next 18 months as it expands its book, he said.