Piramal Alternatives Invests Rs 600 Cr In Annapurna Finance
The strategic investment will drive the company's AUM growth, support market expansion in the microfinance segment
Piramal Alternatives, the fund management division of the Piramal Group, today unveiled an investment of Rs 600 crores (USD 75 Million) in Annapurna Finance, (“Annapurna” or the “Company”), a leading non-banking finance company focussed on microfinance.
The deal involved a combination of secondary purchase of shares and providing Tier-2 capital. The structured capital solution will help fuel the risk-calibrated growth of the Company’s assets under management.
Kalpesh Kikani, chief executive officer (CEO), of Piramal Alternatives said “Microfinance as a retail asset class has grown at a compounded annual growth rate (CAGR) of 32 per cent over the last decade and is expected to continue the high growth trajectory. Through Piramal Alternatives, we are committed to providing bespoke and value-accretive capital to support Annapurna’s growth aspirations in this promising sector."
Unitus Capital acted as the exclusive financial advisor to Annapurna.
Annapurna is one of India’s leading microfinance institutions headquartered in Odisha with assets under management in excess of USD 1.25 billion as of 31 March 2024. A pan India player with a presence in 20 states, the company has also diversified into MSME financing. With its extensive network of 1,372 branches as of 31 March 2024, the company is poised for significant growth and is anticipated to sustain its leadership position.
Gobinda Chandra Pattanaik, Managing Director and CEO, Annapurna Finance said, “The growth capital from Piramal Alternatives will provide the necessary ammunition for business diversification and help consolidate our leadership position in key markets. Credit penetration in microfinance continues to be low and with the right capital and partner, we can script a profitable growth story.”
