Demerger will be Done in Mid-term: Piramal
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.