Piramal Finance Raises ₹2,100 Cr Via QIP, Promoters To Infuse ₹1,750 Cr More

Non-bank lender Piramal Finance on Monday announced that it will be raising ₹3,850 crore of growth capital from an institutional placement of shares and a promoter infusion.

The city-headquartered company has raised ₹2,100 crore from a qualified institutional placement (QIP) of shares and the board has also approved a ₹1,750 crore fund raise from promoters through a preferential issue, as per an official statement.

The QIP, which was open between August 24-28, saw interest from domestic mutual funds and global institutions, it said.

The domestic asset managers which showed interest in the QIP included ICICI Prudential Mutual Fund, Nippon India Mutual Fund, Kotak Mutual Fund, Quant Mutual Fund, Axis Mutual Fund, Motilal Oswal Mutual Fund, Tata Mutual Fund, Franklin Templeton Mutual Fund and Aditya Birla Sun Life Mutual Fund.

The QIP also saw participation from global investors, including BlackRock, Goldman Sachs Asset Management and Eastspring Investments, it said.

A total of 99.52 lakh shares were allotted at ₹2,110 per share as part of the QIP, it said.

Anand Piramal, Chairman of Piramal Finance, said the company is humbled by the strong response from investors and grateful for the trust reposed in it.

Separately, the company’s board has also approved a preferential issue of warrants worth around ₹1,750 crore to one of the promoter group entities, it said, adding that this fundraise is subject to the shareholders, statutory and regulatory approvals.

"Once successfully completed, the two transactions together will entail an equity capital infusion of around ₹3,850 crore," the statement added.

The capital raise will strengthen the balance sheet and capital base, and provide greater flexibility to pursue disciplined growth through diversified retail and granular wholesale lending, the statement said.

Over the years, it has served over 60 lakh customers and enabled more than 25 lakh high-impact loans across affordable housing, small businesses and underserved communities, Anand Piramal said.

Shares of Piramal Finance were trading 1.35% higher at ₹2,309.10 apiece on the BSE at 3:20 PM.