Ajay Piramal-led Piramal Enterprises Ltd is in talks to take control of Infrastructure Leasing & Financial Services (IL&FS), an infrastructure developer and financing firm, according to a report by The Economic Times, citing unnamed sources.
The report said Piramal Enterprises will spin out its financial services business and merge it with IL&FS in an all-stock deal to gain control of IL&FS.
It did not say if the deal would also include transfer of the real estate private equity arm housed under Piramal Fund Management.
IL&FS is also a promoter of a string of public listed firms including IL&FS Investment Managers or IL&FS PE, one of the top-tier PE firms in the country.
Messages sent and calls made to IL&FS did not elicit a response while Piramal Enterprises' spokesperson declined to comment.
After selling its domestic formulations business to Abbott for $3.7 billion in 2010, cash rich Piramal Enterprises has built a strong presence in the financial services space. While promoters brought their privately held realty PE arm under the listed firm, the company also built an infrastructure financing platform and has made some large bets in the sector with stakes in Shriram Group firms.