Piramal Enterprises shares gain over 3% on stake increase by promoter group

The shares of non-banking financial company (NBFC) Piramal Enterprises rose by 3 per cent after the promoter group of the company increased their stake to 46.30 per cent from 46.03 per cent on August 16, 2024.

According to the exchange filing, the promoter group purchased 6.16 lakh equity shares on the floor of the stock exchange, representing 0.27 per cent of the total paid-up share capital of the company, through an entity that is part of the group.

“…the company has been informed by the promoters that, on August 16, 2024, through an entity forming part of the company’s promoter group, 6,16,615 equity shares were purchased on the floor of the stock exchange, representing 0.27 per cent of the total paid-up share capital of the company,” said the exchange filing.

 

The company said that the acquisition of shares aligns with the promoters’ belief in its growth trajectory, further reflecting their trust in the company’s business fundamentals, future plans, and value creation potential.

According to stock exchange data on the shareholding pattern, mutual funds own a 6.26 per cent stake, 5.34 per cent is owned by insurance companies, and 15.95 per cent is owned by foreign portfolio investors (FPIs) as of June 30, 2024.

Recently, the company’s net profit declined by 64 per cent year-on-year (Y-o-Y) in the first quarter of FY24 to Rs 181 crore from a one-off gain registered in the year-ago period.

The net interest income of the company rose by 18 per cent Y-o-Y to Rs 807 crore from Rs 681 crore in Q1FY24, whereas other income grew by 33 per cent Y-o-Y to Rs 58 crore. The net interest margin (NIM) of the finance company dropped to 6.7 per cent compared to 7.3 per cent in the last year.