[Funding News] Piramal Alternatives Invests INR 600 Cr in Annapurna Finance

Through secondary equity acquisitions, the investment arm of the Piramal Group, Piramal Alternatives, invested Rs 600 crore in Odisha-based Annapurna Finance.

The corporation invested Rs 300 crore for a secondary equity sale that allowed it to acquire a 9.85% interest in Annapurna, however the terms of the agreement were not made public. Piramal Alternatives has also purchased the microfinance company's tier-2 convertible bonds, as reported by Financial Express.

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According to a statement, the investment includes buying a secondary holding from an existing shareholder and giving it non-core Tier-II capital.

Kalpesh Kikani, chief executive officer of Piramal Alternatives, said: "Microfinance as a retail asset class has grown at a CAGR (compound annual growth rate) of 32% over the last decade and is expected to continue the high growth trajectory,"

As of March 31, 2024, Annapurna, which is based in Odisha, had an AUM of $1.25 billion. It is present in 20 states with 1,372 branches, and it also provides loans to small, medium-sized, and micro businesses.

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Gobinda Chandra managing director at Annapurna Finance said "the growth capital from Piramal will help in business diversification and consolidating position in key markets."

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