Piramal Enterprises rose 2.15% to Rs 1,692.10 at 10:41 IST on BSE after the company announced plans to enter the retail housing finance market by incorporating a housing finance company as its subsidiary.
The announcement was made before market hours today, 6 January 2017.Meanwhile, the S&P BSE Sensex was up 129.68 points or 0.48% at 27,007.40.
On the BSE, 12,300 shares were traded on the counter so far as against the average daily volumes of 13,500 shares in the past one quarter. The stock had hit a high of Rs 1,719.50 and a low of Rs 1,681.05 so far during the day.
The stock had hit a record high of Rs 2,095 on 22 August 2016. The stock hit a 52-week low of Rs 835.05 on 03 March 2016. The stock had underperformed the market over the past one month till 5 January 2017, declining 0.72% compared with the Sensex's 2.01% rise. The scrip had also underperformed the market over the past one quarter, sliding 12.2% as against the Sensex's 4.76% fall.
The large-cap company has equity capital of Rs 34.51 crore. Face value per share is Rs 2.
At a board meeting held yesterday, 5 January 2017, Piramal Enterprises announced plans to enter the retail housing finance market. The company's board of directors has given its approval for Piramal Finance (PFL) to make an application to the National Housing Bank (NHB) for incorporating a housing finance company (HFC) as its subsidiary. The company's wholly owned subsidiary, PFL is in the business of providing financial services.
PFL already has a long standing presence in wholesale finance, catering to the entire spectrum of financing needs across real estate (both residential and commercial) as well as non-real estate (operating infrastructure and other sectors) sectors with a current overall loan book extending to Rs 19170 crore. Individual housing loans are both a diversification strategy as well as a natural extension of its business, completing its suite of products with an offering for the retail customer segment, Piramal Enterprises said.
Ajay Piramal, Chairman, Piramal Enterprises said that after having successfully scaled up presence in wholesale finance through Piramal Finance, the company believes that it has established a blueprint for growth within the real estate asset class. Therefore, the company feels that the timing is opportune for it to make a foray into retail housing finance, Piramal said.
Piramal Enterprises' consolidated net profit rose 30.2% to Rs 306.36 crore on 29.7% rise in net sales of Rs 1936.40 crore in Q2 September 2016 over Q2 September 2015.
Piramal Enterprises is one of India's large diversified companies with a presence in healthcare, healthcare information management and financial services.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content