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Piramal Housing Finance to raise Rs 400 cr via Commercial Paper

Icra has assigned A1+ rating to the housing finance company's commercial paper

Abhijit Lele  |  Mumbai 

Ajay Piramal, chairman, Piramal Enterprises
Ajay Piramal, chairman, Piramal Enterprises

Piramal Housing Finance, which began operations last month, will lift its first through Rs 400-crore commercial paper, a short-term money market instrument. 

Rating agency has assigned 'A1+' rating to the company's commercial paper.

said the company enjoys operational synergies with its parent Piramal Finance Ltd, thanks to PFL's experience in lending and the large network of developers built over time. PFL is a wholly-owned subsidiary of Piramal Enterprises.

Moreover, the association with the Piramal Group would provide the company raised The firm has brought on board seasoned professionals having experience in the retail lending space.

Given the inherently profile of the segment, a build-up of the retail book would help alleviate the of the portfolio on a consolidated basis, said.

said it has taken note of early stages of operation of the company, limited experience of the group in retail lending, and the aggressive for the entity. 

Flagging up some risks, the rating agency said is targeting a rapid expansion of its to over Rs 15,000 crore by the end of FY20. It has already booked assets worth Rs 200 crore since it commenced business in early September.  
The company's ability to execute its business plans and grow profitability, raise funds at competitive rates and maintain healthy asset quality, would remain the key sensitivities, said. 

The group's long-standing experience and expertise in the segment, and experience in the segment will come handy in business operations.  

would remain the key focus for the company. would also offer products like loans against property (15 per cent of the portfolio on a steady-state basis) and construction finance (20 per cent of portfolio on a steady-state basis).

First Published: Tue, October 03 2017. 00:03 IST