De­merger will be Done in Mid-term: Pi­ra­mal

The Economic Times - - Companies: Pursuit Of Profit -

in the pharma busi­ness? If you look at our his­tory in the past 30 years, we have been very dis­ci­plined. We didn’t ac­quire for the sake of ac­quir­ing: we ac­quired only if there was a strate­gic need, and if we could cre­ate value. We have done quite a few ac­qui­si­tions last year – we will in­te­grate them and see the ef­fects. So far, it looks good.

You were go­ing to launch a QIP. What’s the sta­tus of that now? We are look­ing to raise funds be­cause our fi­nan­cial ser­vices loan book has been grow­ing fast. In that busi­ness, cap­i­tal and cash are the raw ma­te­ri­als which you can grow by. There were two events that took place. We wanted them to get over — IDFC and Shri­ram merger an­nounce­ment and Q1 re­sults an­nounce­ment. It is im­por­tant for us to be trans­par­ent, now we will see.

You had some road shows... We told them that we are tak­ing a pause. They wanted to know about how the quar­terly re­sults were. We could not share any in­for­ma­tion un­til it was pub­licly done.

How do you see the merger? Let it take place. We have to wait for all the reg­u­la­tors to ap­prove it. We will do the val­u­a­tions and see. For us, it is a strate­gic in­vest­ment.

Will you re­cuse your­self from the board? You would have a con­flict of in­ter­est be­cause you also have a big fi­nan­cial ser­vices busi­ness... We will do ev­ery­thing that is in the best in­ter­est of Shri­ram Group. We will take things as they come.

Through your QIP funds you can raise 3 times more debt. Is that how you are look­ing at it? We are ex­am­in­ing ev­ery­thing. QIP is not a done deal. We are look­ing at all op­tions, and are very shy of di­lut­ing eq­uity.

Is the IDFC merger with Shri­ram Cap­i­tal a liq­uid­ity event for you? No, it is not

What is the up­date on de­merger of pharma and fi­nan­cial ser­vices busi­ness? We have told share­hold­ers that we will do it in the mid-term, we will do it at the right time. In the mean­time, share­hold­ers wanted more trans­parency, so we moved most of the books to an NCBFC, which is a 100% sub­sidiary. They wanted to know the eq­uity and debt, which is avail­able. We are get­ting more trans­par­ent.

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