Piramal to promote company following merger of financial services business with IL&FS
Q. Ajay Piramal will become promoter with 35% stake in the firm Piramal Enterprises to be created through merger of financial services business unit with which infrastructure company?- Published on 02 Oct 15a. Larsen and Toubro Infrastructure Development Projects Ltd
b. Reliance Infrastructure Limited
c. GMR Infrastructure Limited
d. Infrastructure Leasing and Financing Service Ltd
ANSWER: Infrastructure Leasing and Financing Service Ltd
Ajay Piramal, owner of Primal enterprises will become promoter with 35% stake in company created through merger of financial services business with infra firm IL&FS. All stock deal will contribute to a company with revenue of USD 2.5 billion or INR 15,000 crore to be owned 37% by existing institutional shareholders of the infra firm while retail and foreign investors of PEL will own 28%. The combination of IL&FS and the PEL unit will contribute to a financial services conglomerate with a net worth of INR 14,500 crore and debt of INR 65,000 crore. The presence will span infrastructure finance, corporate lending and PE fund with assets under management of USD 3 billion. The firm will also include 10 power firms and India’s largest wind energy assets of 1000 MW30 functional toll road projects and engineering and consultancy company Maytas Infrastructure. IL & FS is owned by SBI, the largest bank by assets , India’s largest private sector mortgage lender HDDFC and LIC, the largest insurer in India. Other shareholders include CBI, Orix and AIDA. Piramal and his family now own 53% stake in PEL which earned 18% of the revenue in the previous fiscal from financial services.
