Piramal Alternatives which is the fund management arm of Piramal Group invested Rs 600 crore in  Annapurna Finance. The company has now acquired 9.85% stakes in Annapurna Finance through  secondary equity deals for Rs 300 crore. The investment includes a secondary stake buy from existing  shareholders and also provides it with non-core tier 2 capital.  

Annapurna Finance is an Odhisha-based finance company with an AUM of $1.25 billion. According to  a report by BS, Piramal Alternatives mentioned that the deal involved is a combination of secondary  purchases of shares and providing tier-2 capital. Piramal Alternatives is the fund management business  of the Piramal Group. The structured capital solution is aimed at fuelling the risk-calibrated growth in  Annapurna’s assets. The CEO of Piramal Alternatives, Kalpesh Kikani said that microfinance as a retail  asset has seen a compound annual growth rate of 32% over the last decade and is predicted to rise  more in trajectory.  

Image source: Annapurna finance Image source: Piramal (official site) 

Annapurna Finance has over 1,372 branches in 20 states that nearly cover 450 districts. Annapurna is  one of India’s leading microfinance institutions, founded in 2009 by Gobind Chandra Pattanaik and  Dibyajyoti Pattanaik. This company has various domestic and overseas investors including Nuveen  Global Impact, Oman India Joint Investment, and ADB. The company offers MSME loans through a  network of 1372 branches all over the country. Gobinda Chandra said that the growth capital from Piramal will be used for expanding business and maintaining its position in this market. Annapurna  Finance had Unitus Capital as the finance advisor.  

The CEO of Piramal Alternatives, Kalpesh Kikani said “Microfinance as a retail asset class has grown at  a CAGR of 32% over the last decade and is expected to continue the high growth trajectory”. With $1.5  billion, Piramal Alternative is aiming to address the gap within the mid-market segment. The  company’s existing investors include SIDBI, Oman India Joint Investment Fund, Asian Development  Bank, DCB Bank, and more. The NBFC also offered a secured and unsecured loan amount for micro,  small, and medium-sized enterprise sectors. 

Conclusion: 

Piramal Alternatives which is the fund management arm of Piramal Group invested Rs 600 crore in  Annapurna Finance. This Odisha-based Finance company has an AUM of $1.25 billion. The deal was  done to help Annapurna Finance grow further in the market and strengthen its base. The structured  capital solution is aimed at fuelling the risk-calibrated growth in Annapurna’s assets. The CEO of  Piramal Alternatives, Kalpesh Kikani said that microfinance as a retail asset has seen grown compound annual growth rate of 32% over the last decade and is predicted to rise more in trajectory. Despite the drop in share, the company has shown significant growth in loans and profits, indicating its resilience  in the market. Annapurna Finance has over 1,372 branches in 20 states that nearly cover 450 districts.  Annapurna is one of India’s leading microfinance institutions, founded in 2009 by Gobind Chandra  Pattanaik and Dibyajyoti Pattanaik.