By Dominick Rodrigues
Mumbai : Piramal Capital & Housing Finance Limited (PCHFL), a non-deposit taking housing finance company, into wholesale and retail funding, has announced the issue of secured, rated, listed, redeemable, non-convertible debentures of the face value of Rs. 1,000 each (“Secured NCDs”).
The Tranche 1 Issue, which opens on July 12, 2021 and closes on July 23, 2021, has a base issue size of Rs. 200 crores with an option to retain oversubscription up to Rs 800 crores, aggregating up to Rs. 1,000 crores. The NCDs are proposed to be listed on BSE and NSE.
Highlighting the role of technology in reshaping the lending scenario, Jairam Sridharan, CEO, Piramal Retail Finance, said that a healthy traction is being witnessed across product categories and the company is adding new products in every quarter, besides its seven businesses including retail lending, housing, digital loans, used car and two-wheeler loans.
Rajesh Laddha, CFO, Piramal Group, said that the company’s revenues and net profit had witnessed grown CAGR of 22% in the last 33 years with a strengthened balance sheet, raised long-term capital on Pharma etc.
“We have strengthened our equity and debt front over the last two years,” he said, adding that the company has been able to pay back the shareholders an amount of US $ 1 billion over the last 10 years.
Describing the company’s core strengths as: totally-owned subsidiary of Piramal Enterprises Limited, strong balance sheet, diversified funding services, new age stack to help in delivering solutions, Laddha said the company had anticipated the pandemic in 2020 by making a one-time processing of Rs 1,900 crores, though AUM and Revenues had been flat.
PCHFL is a wholly-owned subsidiary of Piramal Enterprises Limited (“PEL”), which is the flagship company of thePiramal Group, registered as a non-deposit taking housing finance company with the National Housing Bank (NHB).
Piramal began its financial services in 2010 with the setup of Piramal Finance Ltd (PFL) and built a lending platform to serve the needs of corporate and individual customers. While its retail housing finance highlights housing loans for retail customers and other retail lending products, the company has also entered into business partnerships withfintech’s and other consumer focused entities of strategic significance to optimize its vision of multi-product digital lending.
The company has pivoted its business strategy from focusing on large ticket affluent home loans to the prime segment of affordable housing loans and mass affluent housing loans. Its retail housing portfolio has grown from Rs 1,32,618 lakh in Fiscal 2018 (constituting 4% ofour loan book) to Rs 4,43,127 lakh as of Fiscal 2021 (constituting 13.7% of our loan book) in a short span of three years..
