Piramal Enterprises Ltd, the financial services arm of the Piramal Group, has announced that its wholly-owned subsidiary Piramal Alternatives Trust (PAT) will acquire a 10.4% stake in Annapurna Finance Pvt Ltd (AFPL) for Rs 300 crore. The deal will be done through a combination of purchase of equity shares and subscription to optionally convertible debentures.
Annapurna Finance is a non-banking financial company (NBFC) that provides microfinance services to low-income households and small businesses in rural and semi-urban areas. It is one of the top 10 microfinance institutions (MFIs) in India, with an asset under management (AUM) of Rs 9,233 crore as of September 2023. It has more than 1,275 branches and a customer base of over 2.5 million spread across 20 states.
The transaction is subject to regulatory approval and is expected to be completed by March 31, 2024. Piramal Enterprises said that the investment will help Annapurna Finance to expand its reach and product portfolio, as well as strengthen its capital base and governance structure.
Piramal Enterprises is a diversified conglomerate with interests in pharmaceuticals, financial services, healthcare analytics, glass packaging and real estate. It has a global presence in over 100 countries and employs over 12,000 people. Its financial services segment offers a range of products and solutions across wholesale and retail lending, asset management, alternative investments and distressed assets.