Piramal Enterprises has invested Rs 2,000 crore in its wholly owned subsidiary, Piramal Capital & Housing Finance (PCHFL) by way of subscription to rights issue.
PCHFL will be utilizing the investment towards business/general corporate purposes, said the firm.
There is no change in the shareholding percentage of the company in PCHFL pursuant to the aforesaid investment. The transaction being between the holding company and its wholly owned subsidiary, it is exempt from the purview of related party transactions, the company stated in the press release.
The interest of the promoter/promoter group/group companies of the company is only to the extent of PCHFL being a wholly owned subsidiary, it added.
PCHFL is an existing wholly owned subsidiary of the company and its turnover for FY21, FY22 and FY23 was Rs 5,08,165 lakh, Rs 6,03,861 lakh, and Rs 6,59,178 lakh, respectively.
Piramal Enterprises (PEL) is a leading diversified NBFC in India with a presence across retail lending, wholesale lending, and fund-based platforms. The company has investments and assets worth around $10 billion, with a network of branches across 25 states/UTs.
The NBFC reported a consolidated net loss of Rs 2,377.59 in Q3 FY24 as against a net profit of Rs 3,545.37 crore recorded in Q3 FY23. Total income declined 11.18% year on year to Rs 2,546.20 crore in the quarter ended 31 December 2023.
Shares of Piramal Enterprises declined 0.70% to Rs 852.70 on the BSE.
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