SoftBank Close To Completing Due Diligence In Deal To Invest $1 Billion In Piramal’s Financial Services ArmMasayoshi Son, chairman and chief executive officer of SoftBank Corp. (Koki Nagahama/Getty Images)

SoftBank Group, headed by Japanese billionaire Masayoshi Son, is close to completing due diligence on a deal to invest $1 billion in Piramal Enterprises, reports Business Standard. The funds will be poured into the company’s financial services wing.

Once the deal goes through, it would put the valuation of Piramal’s financial services arm at more than $4 billion. The investment will likely be made through SoftBank’s $100 billion Vision Fund, which has previously also pumped in money into other Indian companies such as Flipkart and OYO.

Talks have been ongoing between Piramal and SoftBank for a few weeks now, and it is believed that the deal will likely be closed in the next two months. The deal is somewhat unusual for SoftBank as it has previously avoided investing in listed firms in India.

Piramal’s financial services arm, which currently deals mostly with wholesale and corporate debt, may be transformed to participate in the lucrative fintech field once the deal is concluded.

Update: The Piramal Enterprises meanwhile has submitted a letter [PDF] to the Bombay Stock Exchange (BSE) clarifying that no such deal between the company and SoftBank has been placed for approval of either its board or any of its committees.

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