Non-banking financial company (NBFC) Piramal Finance has announced a Rs 3,850 crore equity capital infusion through a Rs 2,100 crore Qualified Institutions Placement (QIP) and a separate preferential issue of warrants worth around Rs 1,750 crore to a promoter group entity.
The QIP was completed on August 28, with the company allotting 99,52,606 equity shares to Qualified Institutional Buyers at Rs 2,110 per share. The issue, which opened on August 24, received strong participation from leading domestic and international institutional investors.
The QIP saw participation from domestic mutual funds including 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.
Global investors participating in the issue included BlackRock, Goldman Sachs Asset Management and Eastspring Investments.
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The company said the strong institutional response reflects investor confidence in its transformation into a scaled, retail-led, granular and diversified financial services franchise.
Piramal Finance QIP: Key Details
Following the allotment, Piramal Finance's paid-up equity share capital has increased to Rs 47.33 crore from Rs 45.34 crore. The number of equity shares has risen to 23,66,30,306 from 22,66,77,700, with each share having a face value of Rs 2.
Separately, the company's board on August 24 approved a preferential issue of warrants worth around Rs 1,750 crore to one of its promoter group entities. The proposed issue remains subject to shareholder, statutory and regulatory approvals.
Once completed, the QIP and preferential warrant issue will together result in an equity capital infusion of around Rs 3,850 crore.
What Piramal Finance Plans To Do With The Capital
The company said the capital raise will strengthen its balance sheet and capital base, giving it greater flexibility to pursue disciplined growth across diversified retail and granular wholesale lending.
Piramal Finance said it intends to maintain a strong capital buffer and prudent risk profile as it expands its lending operations.
Chairman Anand Piramal said the capital raise marks an important milestone in the company's journey to build a diversified, retail-led and technology-driven financial services institution.
Over the past few years, Piramal Finance said it has expanded its reach across Bharat, broadened its product offerings and integrated technology and artificial intelligence into customer service, decision-making and risk management.
The company said it has served more than 6 million customers and enabled over 2.5 million high-impact loans across affordable housing, small businesses and underserved communities.
High Tech + High Touch Model
Piramal Finance said its High Tech + High Touch model combines physical distribution with technology, data and AI capabilities to serve customers at scale while improving execution, risk management and customer experience.
The company said this model will support its efforts to expand access to simple, fair and meaningful credit for individuals, families and small businesses across semi-urban and emerging India.
QIP Advisors
Nomura Financial Advisory and Securities (India) Private Limited, Motilal Oswal Investment Advisors Limited and JM Financial Limited acted as the Book Running Lead Managers for the QIP.
Cyril Amarchand Mangaldas was the legal adviser to Piramal Finance, while Trilegal and Linklaters Singapore Pte. Ltd. acted as legal advisers and international legal advisers to the Book Running Lead Managers, respectively.
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