Piramal Alternatives Trust acquires 10.39% stake in Annapurna Finance Pvt Ltd

Piramal Alternatives Trust ('PAT'), a wholly-owned subsidiary of the Company, in line with its investment objective and strategy, has entered into an agreement today i.e. January 24, 2024, as a part of its normal course of business, to acquire 10.39% stake in Annapurna Finance Private Limited ('AFPL') for a cash consideration of Rs. 300 crores by way of a purchase of equity shares and subscription to optionally convertible debentures amounting to Rs. 300 crores ('Transaction').

The Transaction is subject to receipt of requisite regulatory approval by PAT and is expected to be completed before March 31, 2024.

AFPL is a Non-Banking Financial Company-Micro Finance Institutions ('MFI') established in 2009 and headquartered in Odisha. It is one of the top 10 MFIs in India, with an asset under management ('AUM') of Rs. 9,233 crores as of September 2023. It has more than 1275 branches and a customer base of over 2.5 million spread across 20 states. The product offerings range from micro finance (86% of AUM) to secured and unsecured medium and small enterprises loans (14% of AUM). In the last three years, its AUM has grown at a compound annual growth rate of 29% (~Rs. 4,000 crores in FY20), with total income of Rs. 977 crores in FY21, Rs. 1,152 crores in FY22, and Rs. 1,570 crores in FY23.

The Transaction is not a related party transaction and the promoter/ promoter group / group companies do not have any interest in the entity being acquired.

Shares of Piramal Enterprises Limited was last trading in BSE at Rs. 867.20 as compared to the previous close of Rs. 854.45. The total number of shares traded during the day was 53732 in over 3744 trades.

The stock hit an intraday high of Rs. 873.20 and intraday low of 846.90. The net turnover during the day was Rs. 46445762.00.

Source : Equity Bulls

Keywords

PiramalEnterprises INE140A01024 Agreement PiramalAlternativesTrust AnnapurnaFinance