Piramal Group arm Piramal Alternatives invests Rs 600 crore in this microfinance company
Annapurna Finance managing director and chief executive officer Gobinda Chandra Pattanaik said the growth capital from Piramal will help in business diversification and consolidating position in key markets.
Mumbai: Piramal Alternatives on Monday announced a Rs 600 crore investment for an undisclosed stake in microfinance company Annapurna Finance.
The investment includes a secondary stake buy from an existing shareholder and also providing it with the non-core tier-II capital, a company statement said.
It did not specify the stake bought or share a break-up of how the Rs 600 crore investment amount is divided.
The "structured capital solution" is aimed at fuelling the risk-calibrated growth in Annapurna's assets under management, the statement said.
Odisha-headquartered Annapurna had an AUM of $1.25 billion as of March 31, 2024. It has a presence through 1,372 branches in 20 states and also lends to small micro, small and medium businesses.
"Microfinance as a retail asset class has grown at a CAGR (compound annual growth rate) of 32 per cent over the last decade and is expected to continue the high growth trajectory," Kalpesh Kikani, the chief executive officer of Piramal Alternatives, said.
Annapurna Finance managing director and chief executive officer Gobinda Chandra Pattanaik said the growth capital from Piramal will help in business diversification and consolidating position in key markets.
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