Pidilite intends to enter the lending market and purchase the NBFC of the promoter group

9 Nov 2023 , 10:22 AM

On November 8, adhesive producer Pidilite Industries announced its intention to go into the lending market with a concentration on small retail loans.

‘The new company would give recognition to its domain ecology in order to bolster their expansion. Small value retail loans will be the main way that this credit is offered, according to a press release from Pidilite.

The company announced that it intends to purchase Pargro, a non-banking financial corporation (NBFC) owned by the promoter group. We have located an NBFC Pargro Investments Private Limited that is now operational and is a member of the promoter group of the business. As of October 31, 2023, Pargro is debt-free and does not have any loan operations, the firm stated in a news release.

It is intended to complete the acquisition of the promoter group NBFC before March 31, 2024, at an estimated cost of Rs 10 crore. ‘After the SPA and relevant documents are executed and the required RBI approvals are obtained, the transaction will be finalized,’ the company stated.

In addition, the corporation intends to invest Rs 100 crore in various tranches after establishing the business.

‘The company expects to invest up to Rs 100 crores in tranches, through an optimal mix of equity and debt, over the next two years to build the new business,’ Pidilite continued.

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