Piramal Enterprises made headlines on April 7 when it announced a significant development in the financial sector. The Reserve Bank of India (RBI) has officially granted its subsidiary, Piramal Finance, the green light to operate as a Non-Banking Financial Institution—Investment and Credit Company (NBFC-ICC). This approval allows them to function without the need to accept public deposits, marking a strategic shift for the company.
RBI Blesses Piramal Finance
In an official exchange filing, Piramal Enterprises shared that the RBI has issued a Certificate of Registration (CoR) under Section 45 IA of the Reserve Bank of India Act, 1934, effective from April 4, 2025. This move will enable Piramal Finance to transition away from its previous role as a housing finance company, as they have now surrendered their Housing Finance Company (HFC) certificate.
Stock Market Reactions
Following this pivotal announcement, Piramal Enterprises witnessed a notable recovery in its stock prices. Initially, the stock experienced a steep decline of over 9% in early trading amid broader market volatility. However, by mid-afternoon, it had bounced back nearly 6% from its lowest point of the day. As of 12:55 PM, the stock traded at ₹929, reflecting a slight decrease of 3.4% from the previous close of ₹961.90. It had opened at ₹873, the day’s low, but reached a high of ₹943.80 during trading.
Upcoming Financial Strategies
In addition to this regulatory approval, Piramal Enterprises is also making strides in financial growth. The company’s administrative committee has recently given the nod for the issuance of secured, rated, listed, redeemable, non-convertible debentures (NCDs), aiming to raise a total of ₹300 crore. This will include a green shoe option to accommodate oversubscription, with ₹100 crore being offered initially.
These debentures are set to be listed on the Wholesale Debt Market (WDM) segment of the BSE and NSE, featuring an attractive coupon rate of 9.30% per annum, payable annually with a maturity date set for April 9, 2029.
Key Takeaways
- Piramal Finance receives RBI approval to operate as an NBFC-ICC.
- Stock prices show volatility but recover post-announcement.
- The company plans to raise ₹300 crore through the issuance of NCDs.
This strategic realignment and capital-raising initiative position Piramal Enterprises for substantial growth in the evolving financial landscape. For further insights into stock market trends and financial news, stay tuned to our updates.
