Piramal Finance: Planning Big Moves in Local and Global Loans

Piramal Finance is making significant moves to secure funding. By the end of this financial year, they aim to borrow a staggering 300 billion rupees. Half of this amount has already been secured, as revealed by CEO Jairam Sridharan.

Sources of Funding

The majority of the funds will be sourced locally:

• 40% from bank loans
• The remaining from local bonds, external loans, securitization, and loans from international organizations

Asset Growth Target

Piramal Finance, although not a bank, manages substantial assets. They are targeting over 1 trillion rupees in assets under management by March. Currently, they hold approximately 900 billion rupees.

International Borrowing

The company may borrow between $500 million and $800 million from outside India. However, they will avoid dollar bonds due to the current cost-effectiveness of borrowing in local currency.

Strategic Decision

This approach demonstrates Piramal Finance's strategic and cost-conscious decision-making. By opting for the cheapest and most reliable sources, they aim to grow their business while minimizing risks.