Watch | Ajay Piramal plans to resign as chairman of Shriram Capital.
(Bloomberg) -- Ajay Piramal said he plans to resign as chairman of Shriram Capital Ltd., the Indian non-bank finance company backed by South Africa's Sanlam Group, as he works to sell his stake in Shriram's parent group.
“I will step down in due course as I do not have much role in Shriram Capital,” Piramal said in a recent interview in Mumbai. He declined to share details.
Piramal, who was named chairman of unlisted Shriram Capital in 2014, is exiting the Chennai-based group after failing to consolidate his holdings into a non-banking financial behemoth amid a cash crunch in India's financial system. He is now planning two funds to invest in embattled realty projects and lend to retail borrowers after announcing a $770 million capital raise.
Read more: Piramal Plans Funds Amid India Shadow Banking Crisis
The Shriram Group is urging Piramal to continue as chairman even if he doesn't hold any shares, founder R Thyagarajan said by phone.
The Indian billionaire's pharmaceuticals-to-real estate group Piramal Enterprises Ltd. sold its 10% stake in truck financier Shriram Transport Finance Co. in June and has started the process to sell its 20% in Shriram Capital.
To contact the reporters on this story: Baiju Kalesh in Mumbai at bkalesh@bloomberg.net;P R Sanjai in Mumbai at psanjai@bloomberg.net
To contact the editors responsible for this story: Fion Li at fli59@bloomberg.net, Jeanette Rodrigues, Bhuma Shrivastava
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