Piramal Group chairman Ajay Piramal
Piramal Group chairman Ajay Piramal

Piramal Enterprises dispels rumours about financial services business, files complaint

  • Piramal Enterprises said it remains committed to bring in 8,000-10,000 crores of equity in the financial services
  • Piramal Enterprises shares have fallen sharply since hitting a 52-week high in April

Piramal Enterprises has filed a complaint with markets regulator Sebi against spreading of "misleading rumours" about the company. Piramal Enterprises shares were trading 1.3% lower at 1,376 in afternoon trade, recovering from a 52-week low of 1315.50 hit earlier in the session. "Certain market participants are spreading false/misleading rumours against the company's financial services business in an attempt to create panic among various stakeholders," Piramal Enterprises said in a regulatory filing.

Piramal Enterprises, the flagship company of the Piramal Group, has presence in pharma, financial services and healthcare information management business.

"In the interest of all our stakeholders, Piramal Enterprises has filed a complaint with Sebi against publishing and spreading misleading rumours about the company on blogs, social media platforms and WhatsApp," it said.

Piramal Enterprises shares had hit a 52-week high of 2,795 in April this year and since then share prices have almost halved.

Giving the current position of its financial services business, Piramal Enterprises said the total borrowings stand at 39,000 crore, which is nearly 75% of its loan book and in the past one year, it has received total inflows of 45,000 crore which comprised 85% of the loan book as of September 2018.

Besides, it said the company has raised 24,000 crore as long-term funds since October 2018, "which reflects the confidence of lenders on the quality of the loan book and the underlying assets".

"We received nearly 19,000 crore in the form of repayments / pre-payments from borrowers in the last one year, reflecting our client selection and the consistent trend in their sales," it added.

The company disbursed about 19,000 crore during October 2018 to September 2019 of which 5,000 crore was disbursed towards retail business of housing finance.

It has repaid debt obligations of 30,000 crore in the past one year, of which 5,300 crore was repaid in second quarter of the current fiscal, it said further.

Piramal Enterprises said it "remains committed to bring in 8,000-10,000 crores of equity in the financial services business during this financial year, which would further reduce leverage to less than 2x times".

The promoter holding in Piramal Enterprises remains at 46% – highest amongst sizeable financial services institutions in India - it further said. (With Agency Inputs)

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