Piramal Group's subsidary invests Rs 6 bn in Annapurna Finance

Piramal Alternatives, the fund management arm of the Piramal Group, has made a significant investment in Annapurna Finance Private Limited, amounting to Rs billion. This investment includes Rs 3 billion to acquire a 9.85% stake in Annapurna through a secondary purchase of shares, along with an additional Rs 3 million for subscribing to Annapurna's optionally convertible debenture. ?The deal involved a combination of secondary purchase of shares and providing Tier-II capital. The structured capital solution will help fuel the risk-calibrated growth of the company's assets under management?, commented a representative of Piramal Alternatives ? a wholly-owned subsidiary of Piramal Enterprises. Annapurna Finance, headquartered in Bhubaneswar, is a prominent Non-Banking Financial Company (NBFC) with a strong focus on microfinance. Last year, the company applied for a universal bank license from the Reserve Bank of India. As of March 31, 2024, Annapurna Finance boasts assets under management exceeding $1.25 billion, operating through 1,372 branches across 20 states, covering nearly 450 districts. ?The growth capital from Piramal Alternatives will provide the necessary ammunition for business diversification and help consolidate our leadership position in key markets,? said Gobinda Chandra Pattanaik, MD & CEO, Annapurna Finance Private Limited. Unitus Capital served as the exclusive financial advisor to Annapurna Finance for this transaction. Apart from microfinance, Annapurna Finance also extends secured and unsecured loans to micro, small, and medium-sized enterprises (MSMEs). The company enjoys backing from prestigious domestic and international investors, including Nuveen Global Impact, Oman India Joint Investment Fund, and the Asian Development Bank, among others.

(Source: Business Standard)