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.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber