We have adequate capital to grow for the next 4-5 years: Ajay Piramal

economictimes.indiatimes.com:

«We are looking at inorganic opportunities. As you know, we had done the DHFL acquisition which was a large inorganic opportunity, which was about two years ago, now it will be two years in September and we will continue to look at inorganic activities provided that it fits in with our strategy,» says Ajay Piramal, Chairman, Piramal Enterprises.How is the condition of the balance sheet right now, especially after selling the Shriram Finance stake, Rs 4800 crore proceeds coming in, how are you going to use it? Will it be used for growth capital of the retail book?So, the balance sheet actually is very strong.

Before, as you know, we had announced a buyback at 25% premium to the closing date of the buyback. When the buyback announcement was made and before that our debt equity ratio was only 1.2.

Now, it will get to about 1.3 times debt equity, so it is a very strong balance sheet. We have adequate capital to grow for the next four or five years even if we grow at 20% plus year on year.What is the plan going forward? Are you also looking at, with this kind of a strong balance sheet and tailwind in the industry and all your efforts coming to force, looking at some inorganic opportunities as well or not yet?We are looking at inorganic opportunities.

As you know, we had done the DHFL acquisition which was a large inorganic opportunity, which was about two years ago, now it will be two years in September and we will continue to look at inorganic activities provided that it fits in with our strategy. There is some value that we can see in the acquisition and it is at the right price.

So, combination of all this, we do look at it.Also talk to us about the thinking behind the buyback which you have announced. What is the