History

Business Segments

1. Wholesale Lending:PEL's Wholesale Lending segment offers a wide range of financial solutions to real estate developers, corporate clients, and retail customers. These bringing forths include structured debt (mezzanine, senior, subordinate debt), construction finance, and unique flexi lease rental discounting.
2. Retail Lending:In the Retail Lending segment, PEL delivers housing loans to individual customers, covering home loans, balance transfer loans, and top-up loans. This segment is experiencing rapid growth due to increasing eligibility for home loans and PEL's extensive distribution network.
3. Alternatives:This segment core priorityes on investments in equity, debt, and other assets, as well as providing asset management services. PEL invests through private equity, venture capital, and real estate funds. The organization has ties with various investment platforms and JVs, with marquee partners to invest.

Subsidiaries of Piramal Enterprises Limited

• Piramal Capital & Housing Finance Limited (PCHFL):It is a fully-owned subsidiary of Piramal Enterprises Limited and is recognised as a housing finance company under the authority of the National Housing Bank (NHB). PCHFL is actively involved in diverse financial services, catering to both wholesale and retail funding requirements across various industries. Within the real estate domain, this platform delivers housing finance and an array of financial solutions that cover the entire spectrum of capital needs. This includes structured debt, construction finance, and flexible lease rental discounting, among others.
• Piramal Fund Management Pvt Ltd (PFMPL):PFMPL serves as the fiduciary division within Piramal Enterprises Ltd's financial services sector. Previously commonly referred to as Indiareit, PFMPL was among the pioneering institutions in India to venture into Real Estate Fund Management. At present, PFMPL oversees/advises a total of approximately ₹4,300 crores in funds. This includes management of 5 Domestic Funds, 2 Portfolio Management Strategies, and a Third Party Mandate.
• PHL Fininvest Private Limited:PHL Fininvest is a wholly owned subsidiary of Piramal Enterprises Limited (PEL), a leading diversified financial services company in India. PHL Fininvest is registered with the Reserve Bank of India (RBI) as a non-banking financial company (NBFC) and is engaged in various financial services businesses. PHL Fininvest offers financing to real estate and non-real estate sectors such as healthcare, infrastructure, hospitality, automotive, financial services, transport, renewable energy, entertainment, etc.

Key Personnel

1. Ajay Piramal, Chairman

Corporate Actions

1. Piramal Enterprises Limited announced its buyback on August 25, 2023, with an issue size of 1.40 Crores shares, amounting to ₹1,750.00 Crores, at a buyback price of ₹1250 per share.

1. On September 1, 2022, Piramal Enterprises Limited issued and allocated 4 equity shares valued at ₹10 each in Piramal Pharma for every 1 equity share worth ₹2 each held by Piramal Enterprises Limited shareholders.

1. Piramal Enterprises Limited issued rights shares at a ratio of 11:83, along with a premium of ₹1,298 per share, on December 31, 2019.
2. On February 1, 2018, Piramal Enterprises Limited offered rights to its shareholders at a premium of ₹2,378 per share, with a ratio of 1:23.

• The loan book mix for Retail and Wholesale loans is a critical financial indicator. The target mix is mentioned as 2/3rd (Retail) and 1/3rd (Wholesale), and it improved significantly to a 50:50 mix at the end of March 2023. This shift in the loan book mix indicates a change in the composition of the organization's assets and revenue sources.
• The retail financing enterprise saw significant growth across various metrics, including AUM (Assets Under Management), the number of branches, customer franchises, the number of products launched, and disbursements. Specific numbers or growth percentages for these metrics are not provided, but they represent key performance indicators of growth.
• Cross-selling to a large and growing customer franchise resulted in significant growth in Home Loans and other products. While exact numbers are not mentioned, this cross-selling growth is important for assessing the organization's revenue diversification and profitability.
• The organization's efforts to become a more diversified lender and improve risk management. The strengthening of the Enterprise Risk Management system and the use of AI/ML technology in risk management operations are important pointers for assessing the organization's ability to manage and mitigate risks effectively.
• A "proactive approach" to risk management and the use of technology, including proprietary scorecards, is implemented, indicating a commitment to maintaining strong risk management practices. While specific numbers are not given, the effectiveness of risk management is crucial for profitability and sustainability.