You are here: Home » Markets » News
Business Standard

Piramal Enterprises surges 5% as SoftBank readies $1 bn investment

The cash will go to the Mumbai-based company's financial services arm, which primarily deals in wholesale and corporate debt

SI Reporter  |  New Delhi 

Masayoshi Son asked Visal Shekhar Sharma to take more funds than the $1.8 billion Paytm needed for expansion

rose 5 per cent to Rs 1,986 on the in early morning trade after a Business Standard report said that Japanese conglomerate was in final stages of talks with Piramal group to invest $1 billion.

At 10:43 AM, the stock was trading 2.4 per cent higher at Rs 1,934.80 as compared to a 0.17 per cent dip in the benchmark S&P

Masayoshi Son-led is in the final stages of due diligence for investing $1 billion in The cash will go to the Mumbai-based company’s financial services arm, which primarily deals in wholesale and corporate debt, a source in the know said. The deal would peg the value of the financial services arm of Piramal Group at over $4 billion, the report said. CLICK HERE FOR THE FULL REPORT

The Japanese conglomerate is likely to route this investment through its $100-billion vision fund.

The two sides have been locked in conversation for a few weeks now and the handshake agreement was done earlier last week. The last details of the due diligence process are pending and the deal is officially expected to close in about two months.

It is possible that the financial services company will not remain a subsidiary much longer as the two plan to set up a fintech platform, which will look to give loans across the board.

On Friday, June 21, had issued a clarification on reports of the company being in advance talks to raise funds from marquee investors. "No such proposal as referred to in the report has been placed for approval of the Board or any of its Committees," the company had said.

First Published: Mon, June 24 2019. 10:56 IST
RECOMMENDED FOR YOU