rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » How India's takeover tycoon reaped a fortune

How India's takeover tycoon reaped a fortune

April 11, 2014 09:12 IST

How India's takeover tycoon reaped a fortune

     Next

Next
BS Reporter in Mumbai

Ajay Piramal, known as India’s original takeover tycoon for building his pharmaceuticals empire on a modest textile inheritance through a series of acquisitions, is fast becoming one of India’s savviest investors. 

On Thursday, Piramal sold his 11 per cent stake in Vodafone India, reaping a windfall of 52 per cent return in just two years.

Click NEXT to read more…


Image: Ajay Piramal.
Photographs: Courtesy, Piramal Enterprises

     Next

How India's takeover tycoon reaped a fortune

Prev     Next
Prev

Next

The Piramal group flagship Piramal Enterprises sold the stake comprising 45.4 million shares of Vodafone India for Rs 8,900 crore (Rs 89 billion) to Prime Metal, an indirect subsidiary of Vodafone. 

Piramal had picked up the 11 per cent stake in two tranches during FY12, paying a total of Rs 5,864 crore or Rs 1,290 per share. Thursday’s deal values the shares of Vodafone India at Rs 1,960 apiece, valuing the telecom firm at $13.45 billion (Rs 81,130.35 crore).

Click NEXT to read more…


Image: US President Barack Obama sits next to Ajay Piramal (L) and Anand Mahindra during a meeting with entrepreneurs in Mumbai.
Photographs: Jason Reed/Mumbai

Prev     Next

How India's takeover tycoon reaped a fortune

Prev     Next
Prev

Next

“The equity purchase in Vodafone was consistent with our objective of making investments that offer opportunity to generate attractive long-term return on equity,” said Piramal, chairman of Piramal group. “I am glad to say that we have delivered against our targeted returns with this investment.”

Piramal earned a pile of cash after selling his domestic generics business to Abbott Labs in 2010 for Rs 18,000 crore (Rs 180 billion). In the last three years, he has invested in a slew of other businesses, including information management systems, real estate, road building, truck financing and renewable energy.

Click NEXT to read more…


Photographs: Richter Frank-Jurgen/Wikimedia Commons

Prev     Next

How India's takeover tycoon reaped a fortune

Prev     Next
Prev

Next

In each of these new businesses, the group has been able to profitably fill an area where there was no competition. 

For instance, its financial services arm caters to businesses that have real assets but need capital to grow.

The pharmaceutical and life sciences businesses, on the other hand, have invested in areas that will be big in the future such as molecular imaging for early detection of diseases.

Click NEXT to read more…


Image: Ajay Piramal, chairman of the Piramal Group, speaks during the Reuters India Investment Summit in Mumbai.
Photographs: Reuters
Tags: India

Prev     Next

How India's takeover tycoon reaped a fortune

Prev     More
Prev

More

The deal with Piramal is part of Vodafone’s plan to take 100 per cent ownership of its Indian operations, following the relaxation in foreign investment norms in the telecom sector where the foreign direct investment ceiling was raised from 74 per cent to 100 per cent.

Max India chief Analjit Singh was the other minority shareholder in Vodafone India, who has already sold his stake

ZOOMING VALUATION

2011

Piramal Enterprises buys about 5.47% stake for Rs 2,893 crore in Vodafone India

Valuation of Vodafone India: Rs 52,888.48 crore

February 2012

Piramal Enterprises buys about 5.5% stake (additional) for Rs 3,007 crore in Vodafone India

Valuation of Vodafone India: Rs 54,672.72 crore

April 2014

Piramal Enterprises sells its 10.97% stake in Vodafone India for Rs 8,900 crore

Valuation of Vodafone India: Rs 81,130.35 crore

The valuation of Vodafone India in 2007 when Vodafone Plc bought into Hutch was about  Rs 57,000 cr


Image: Ajay Piramal
Photographs: Reuters

Prev     More
Source: