IVRCL Infrastructures and Projects is negotiating with potential bidders to offload its 55% stake in industrial equipment unit Hindustan Dorr-Oliver. Piramal Group has joined the race to acquire the unit. Piramals concluded due diligence last week, valuing the firm at under Rs 900 crore. Enam is the financial advisor for this potential transaction.
For Piramals, a successful deal would help the company enter the industrial equipment and engineering space, but more significantly, provide an opportunity to gain access to the target’s fixed assets, including real estate. Piramals recently sold their formulations business to Abbott for $3.7 billion.
The company has appointed a team from Harvard Business School to study the prospects of entering the construction business and it has had a look at some acquisition targets. Piramal Group is also exiting venture capital fund Indiareit Fund Advisors and is keen to concentrate on his realty development business — Piramal Sunteck Realty — a joint venture between the Ajay Piramal Group and Sunteck Realty.
