Mumbai: The highly competitive housing finance market is set to have another entrant – Ajay Piramal-led Piramal Enterprises is entering the segment through its subsidiary Piramal Finance Ltd (PFL).
In a filing to the stock exchanges, Piramal Enterprises said while the subsidiary was present in financial services, it would now foray into housing finance.
“In line with the company’s growth plans, Piramal Finance will now make an application with the National Housing Bank for incorporating a housing finance company. This has been approved by the company’s board today,” Piramal Enterprises said in the filing.
Though the announcement came after market hours, the Piramal Enterprises scrip ended with gains of Rs 54.70, or 3.41 per cent, at Rs 1,656.50 on the BSE today.
After the divestment of its formulation business to Abbott in 2010 for around $3.7 billion, Piramal Enterprises diversified into financial services, besides strengthening its presence in realty.
In financial services, one of its arms is Piramal Capital, comprising two entities – Piramal Fund Management Pvt Ltd for real estate and the Structured Investment Group for infrastructure. Another entity Piramal Finance Ltd is registered as a non-banking finance company.
The group’s decision to foray into housing finance comes at a time banks have made massive cuts in their benchmark lending rates because of the liquidity triggered by demonetisation. Subsequently, interest rates on home loans have also come down.
Piramal Finance to foray into housing finance business