Piramal looking to acquire road assets in India; signs advisory services agreement with SBI Cap
In an indication that Ajay Piramal-led Piramal Enterprises is apparently eyeing the acquisition of road assets in India, the company has worked out an advisory services agreement with merchant banker SBI Capital (SBI Cap) on Thursday.
Under the terms of the agreement signed by Piramal Enterprises and SBI Cap, the companies have mutually consented that, with regard to advisory services pertaining to the sale of road projects going through SBI Cap, their association will be on a preferred relationship basis.
Pointing to the fact that nearly 200 road projects – with a total equity investment of approximately Rs 60,000 crore – are up for sale in India, Piramal Enterprises’ co-head (structure investment group) Parvez Umrigar said that SBI Cap is a State Bank of India subsidiary, which has relationships with other banks and handles a number of proposals involving sale of road projects.
The advisory services partnership will essentially enable Piramal Enterprises to get a “preferred look” into road-sale proposals being handled by SBI Cap. In case any of the proposals appears lucrative to the company, SBI Cap will help it in obtaining necessary approvals for closing a deal.
With Piramal Enterprises’ Investments Chief Jayesh Desai having said in a September 2013 interview to The Financial Express that the company has Rs 10,000-12,000crore in cash, which it plans to invest in the infrastructure sector over the next 5-7 seven years, Umrigar said that the company’s advisory services pact with SBI Cap is “a step further in that direction.”
Source – The Financial Express
acquisition of road assets in India, Ajay Piramal led Piramal, Investments Chief Jayesh Desai, Parvez Umrigar, Piramal Enterprises, sbi capital
