Piramal Enterprises Invests ₹700 Crore in Piramal Finance via Rights Issue

30 Jun 2025 , 09:12 AM

Piramal Enterprises Ltd. has infused fresh capital of ₹700 crore into its wholly-owned subsidiary, Piramal Finance Limited (PFL), by subscribing to a rights issue. The funds will support PFL’s day-to-day operations and broader corporate requirements, the company stated in its latest regulatory communication.

Since Piramal Enterprises already owns 100% of PFL, this transaction does not change the shareholding structure. The deal is also not classified as a related party transaction, as per prevailing regulations, because it’s between a parent company and its fully-owned unit. The company clarified that the promoter group’s involvement in the transaction is indirect, limited to its holding in the parent firm itself.

Alongside the capital infusion, Piramal reiterated its ongoing plan to gradually reduce its legacy wholesale loan book, aiming to bring it down from the current ₹7,000 crore to around ₹3,500–4,000 crore within the next year. Management assured that this deleveraging effort will be executed without causing any adverse impact on the company’s financial health.

On the performance front, Piramal Enterprises Ltd has seen steady growth in its operational revenue over the past three fiscal years. The company posted ₹6,59,178 lakh in FY23, ₹6,66,356 lakh in FY24, and ₹8,17,948 lakh in FY25, reflecting a positive trajectory.

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