(MENAFN- KNN India) Bhubaneswar, May 14 (KNN) In a significant move, Piramal Alternatives, the investment arm of the diversified Piramal Group, has pumped Rs 600 crore into Odisha-based microfinance institution Annapurna Finance.
The investment was made through a combination of secondary equity deals and subscription to Tier-2 convertible bonds.
Piramal Alternatives acquired a 9.85 per cent stake in Annapurna Finance by purchasing shares worth Rs 300 crore fr0m existing investors, including Asian Development Bank, Bamboo Capital, Bio, DCB Bank, Oikocredit, Oman India Joint Investment Fund (OIJIF), Sidbi Ventures, and Women's World Banking. Sidbi Ventures fully exited Annapurna, while others took a partial exit.
Additionally, Piramal Alternatives invested an equal amount of Rs 300 crore by subscribing to Tier-2 convertible bonds issued by Annapurna Finance.
This strategic investment has positioned Piramal Alternatives as one of the top three institutional shareholders in the microfinance lender.
Kalpesh Kikani, CEO, Piramal Alternatives, expressed confidence in the microfinance sector's growth potential, stating, "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."
He further added, "Through Piramal Alternatives, we are committed to providing bespoke and value-accretive capital to support Annapurna's growth aspirations in this promising sector."
Annapurna Finance, a leading non-banking financial company-microfinance institution (NBFC-MFI), had assets under management of around Rs 10,400 crore as of March 31. The lender, which has diversified into MSME financing, operates in 20 states across India.
Gobinda Pattanaik, the managing director at Annapurna Finance, welcomed the growth capital fr0m Piramal Alternatives, stating, "The growth capital fr0m Piramal Alternatives will provide the necessary ammunition for business diversification and help consolidate our leadership position in key markets."
He further added, "Credit penetration in microfinance continues to be low, and with the right capital and partner, we can script a profitable growth story."
Unitus Capital acted as the exclusive financial advisor to Annapurna Finance for this transaction.
(KNN Bureau)
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