Piramal Capital Puts INR 1,625 Cr Real Estate Loans on the Block - Focus Shifts to Retail Lending

Mumbai NBFC Invites Bids for Loans Extended to Sheth Creators, Offers Due by March 12

Mumbai: Piramal Capital & Housing Finance Ltd. (PCHFL) has put ₹1,625 crore worth of real estate loans up for sale, inviting bids from asset reconstruction companies (ARCs), NBFCs, and financial institutions on an upfront cash payment basis.

These loans were extended to Transcon Sheth Creators, Sheth Creators, and Homemakers, and the deadline for submitting offers is March 12, 2025.

Strategic Shift Towards Retail Lending

Piramal Capital, which has been actively reducing its exposure to wholesale loans, is streamlining its portfolio to focus on retail lending and housing finance. This move aligns with its broader restructuring strategy following its 2022 demerger of the pharmaceutical business and consolidation of its financial services under Piramal Enterprises Ltd. (PEL).

Bidding Process & Due Diligence Timeline

Interested bidders must submit an Expression of Interest (EOI) and an earnest money deposit (EMD) of ₹50 crore. Due diligence on the loan portfolio will remain open until March 11, 2025.

Financial Health & Recent Developments

As of December 2024, Piramal Capital reported:

• Gross Non-Performing Assets (GNPA): 2.8% Net

• Non-Performing Assets (NNPA): 1.5%

• The company operates its financial services across three verticals.

• Real Estate Financing (construction finance & lease rental discounting).

• Corporate Mid-Market Lending (targeting mid-tier companies).

• Housing Finance & Retail Loans (focus on consumer credit).

In Q4 2024, PCHFL reduced its wholesale legacy book by ₹1,700 crore as part of a structured clean-up strategy.

Key Facts & Figures at a Glance

• Loan Portfolio for Sale: ₹1,625 crore

• Key Borrowers: Transcon Sheth Creators, Sheth Creators, Homemakers

• Bid Submission Deadline: March 12, 2025

• Due Diligence Window: Open until March 11, 2025

• Earnest Money Deposit (EMD): ₹50 crore

• Total Assets of Piramal Enterprises: ₹90,000 crore

Wholesale Loan Reduction (Q4 2024): ₹1,700 crore GNPA (Dec 2024): 2.8% | NNPA (Dec 2024): 1.5%

Disclaimer: The information in this article is based on publicly available reports and company disclosures. Investors and bidders are advised to conduct independent due diligence before making financial commitments.