PIRAMAL ENTERPRISES LTD INVESTS ₹7 BILLION IN PIRAMAL FINANCE TO FUEL GROWTH

Piramal Enterprises Ltd (PEL), a leading diversified non-banking financial company, has announced an investment of ₹7 billion (₹700 crore) into its wholly owned subsidiary, Piramal Finance Ltd (PFL), as part of a strategic move to strengthen its financial position and support business expansion.

 

Key Highlights:

 

PEL’s ₹7 billion infusion into Piramal Finance is structured as a rights issue, ensuring the parent company retains 100% ownership in the subsidiary.

 

The capital injection is aimed at supporting PFL’s operational growth, expanding its retail and wholesale lending portfolios, and meeting general corporate objectives.

 

Piramal Finance, formerly known as Piramal Capital & Housing Finance Ltd, has demonstrated steady revenue growth, reporting ₹6,038.61 crore in FY22, ₹6,591.78 crore in FY23, and ₹6,663.56 crore in FY24.

 

The transaction is exempt from related-party transaction regulations under SEBI norms, as it occurs between a holding company and its wholly owned subsidiary.

 

The move reflects PEL’s commitment to reinforcing PFL’s financial stability and maintaining a strong capital base amid evolving market conditions.

 

PEL continues to focus on its growth businesses, with retail AUM rising 37% year-on-year to ₹59,093 crore and secured lending accounting for 78% of retail AUM.

 

The company’s robust liquidity position and ongoing integration of PEL and PFL into a unified financial services entity underscore its long-term optimism for the sector.

 

Investors and industry observers are closely monitoring the impact of this capital infusion on Piramal Finance’s future growth trajectory.

 

Source: MarketScreener, Angel One, CNBC-TV18, Piramal Enterprises Ltd.