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Piramal Alternatives, the fund management arm of the Piramal Group, made an investment of Rs 600 crore in Annapurna Finance Private Limited – Rs 300 crore to pick up a 9.85 per cent stake and another Rs 300 crore for subscribing to Annapurna’s optionally convertible debenture.
“The deal involved a combination of secondary purchase of shares and providing Tier-II capital. The structured capital solution will help fuel the risk-calibrated growth of the company's assets under management,” Piramal Alternatives – a wholly-owned subsidiary of Piramal Enterprises – said.
Bhubaneswar-based Annapurna Finance is a Non-Banking Financial Company (NBFC) with a major focus on microfinance and has applied for a universal bank licence to the Reserve Bank of India last year.
The assets under management of Annapurna Finance exceed $1.25 billion as of March 31, 2024, with 1,372 branches spread across 20 states and covering nearly 450 districts.
“The growth capital from Piramal Alternatives will provide the necessary ammunition for business diversification and help consolidate our leadership position in key markets,” said Gobinda Chandra Pattanaik, managing director and chief executive officer, Annapurna Finance Private Limited.
Unitus Capital acted as the exclusive financial advisor to Annapurna Finance.
The NBFC also offers secured and unsecured loans for the micro, small, and medium-sized enterprise sector. It is backed by marquee domestic and overseas investors such as Nuveen Global Impact, Oman India Joint Investment Fund, and the Asian Development Bank, amongst others.
