Piramal Enterprises Injects ₹700 Crore into Piramal Finance via Rights Issue
Piramal Enterprises Ltd (PEL) has made a significant move by investing ₹700 crore in its wholly-owned subsidiary, Piramal Finance Limited (PFL), through a rights issue. This infusion of capital is aimed at supporting general corporate and business objectives for the fast-growing finance arm.
💼 Details of the Investment
The ₹700 crore investment was executed through a rights issue. Since PEL owns 100% of Piramal Finance, the company’s shareholding remains unchanged. Furthermore, this transaction is not classified as a related party transaction as per regulatory norms, since it is between a parent and its wholly-owned subsidiary.
The capital will be used by Piramal Finance to fund its operational needs and strengthen its overall balance sheet as it continues to expand its footprint in the financial services sector.
📊 Piramal Finance Revenue Growth
Piramal Finance has been showing steady growth over the years:
- FY23: ₹6,59,178 lakh
- FY24: ₹6,66,356 lakh
- FY25: ₹8,17,948 lakh
This upward revenue trajectory underlines PFL’s growing influence in the Indian non-banking finance sector, driven by a diversified loan book and customer base.
📈 Piramal Enterprises Share Price Performance
On June 27, 2025, shares of Piramal Enterprises closed at ₹1147.75 on the BSE, down by ₹3.50 or 0.30%. Despite the minor decline, analysts remain cautiously optimistic about the company’s financial outlook.
Motilal Oswal, in its recent research report dated June 23, 2025, maintained a 'neutral' stance on the stock but raised its target price from ₹1,085 to ₹1,250. The brokerage cited signs of earnings stabilization and highlighted that a gradual recovery appears to be underway.
🔍 Key Strategic Move: Reducing Wholesale Exposure
Another strategic highlight mentioned in the Motilal Oswal report is Piramal’s plan to reduce its legacy wholesale loan book from ₹7,000 crore to ₹3,500–₹4,000 crore within the next year. This reduction is expected to occur without adversely affecting its overall financials, showcasing the company’s commitment to risk mitigation and asset quality improvement.
🧑💼 Promoter Group's Involvement
The company clarified that the promoter group’s involvement in this transaction is only through its existing shareholding in Piramal Enterprises. Since PFL is fully owned by PEL, there is no change in ownership or voting power, and the deal is not viewed as involving promoters directly beyond their existing control.
🔚 Conclusion
This ₹700 crore capital injection into Piramal Finance is a strong signal of confidence from Piramal Enterprises in the growth potential of its financial services arm. With rising operational revenue, a focused strategy on reducing risky assets, and improved brokerage sentiment, the company appears well-positioned for long-term growth.
For investors tracking Piramal Enterprises share price and those curious about Piramal Finance rights issue or the company’s long-term prospects, this development is worth noting. As financial markets remain volatile, such internal capital support highlights a company’s ability to self-fund and stabilize its operations effectively.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Please consult with a financial advisor before making investment decisions.
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