Piramal Enterprises shines on plans to foray into housing finance

Piramal Enterprises (PEL) plans to enter housing finance through its 100 per cent subsidiary Piramal Finance (PFL). PEL will apply to National Housing Bank for incorporating a housing finance company (HFC) as its subsidiary. The company is going to leverage its existing strengths in wholesale funding to diversify into retail finance.

Piramal Finance (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 sectors such as operating infrastructure, etc. The company’s overall loan book currently stands at Rs 19,170 crore. In addition, the Piramal Group also acts in a fiduciary capacity, managing external funds with an AUM of Rs 7,315 crore, including alliances with leading global investors.

According to PEL’s management, the company has successfully scaled up its presence in wholesale finance through PFL. It has established a blueprint for growth within the real estate asset class. The company’s relationships and existing investments across more than 300 projects with over 100 development partners will enable it to hit the ground running.

The share price of PEL increased by 3.8 per cent on the bourses in early trades and is trading at Rs 1699.95 on intra-day basis.