Ajay Piramal plans to step down as Chairman of Shriram Capital

Ajay Piramal has said that he plans to resign as the Chairman of the non-banking finance company Shriram Capital Ltd. "I will step down in due course as I do not have much role in Shriram Capital," said Piramal in an interview in Mumbai.

The parent company Shriram Group has urged Piramal to continue as the Chairman even if he does not hold any shares, said founder R Thyagarajan, according to a report in Bloomberg.

Piramal Enterprises sold its 10 per cent stake in truck financier Shriram Transport Finance Co in June. Piramal's pharmaceuticals-to-real estate group has started the process of selling its 20 per cent stake in Shriram Capital.

Ajay Piramal was named the Chairman of Sanlam Group-backed Shriram Capital in 2014.

Separately, the board of Piramal Enterprises approved fresh capital raise of Rs 5,400 crore ($770 million) through a rights issue of Rs 3,650 crore and preferential allotment of compulsory convertible debentures (CCDs) worth Rs 1,750 crore, to capitalise opportunities that may come up in a slowdown-hit economy.

Also read: Piramal Enterprises Q2 results: Net profit jumps 15% to Rs 555 crore, diversified businesses propel revenue higher

Also read: Piramal Enterprises share surges over 5% on plans to raise fund