Stock in focus: Piramal Enterprises subsidiary gets RBI nod to commence NBFC-ICC business

Piramal Enterprises shares hogged the limelight in trade on Monday, April 7, after the non-banking finance company informed exchanges that the Reserve Bank of India (RBI) has granted its subsidiary Piramal Finance approval to commence its business of a Non-banking Financial Institution–Investment and Credit Company (‘NBFC-ICC’) without accepting public deposits.

“… we wish to inform you that the Reserve Bank of India under Section 45 IA of the Reserve Bank of India Act, 1934, on 4 th April, 2025, has granted a Certificate of Registration (‘CoR’) to Piramal Finance Limited (Formerly known as Piramal Capital & Housing Finance Limited), a wholly-owned subsidiary of the Company, to commence its business of Non-banking Financial Institution–Investment and Credit Company (‘NBFC-ICC’) without accepting public deposits,” the company said in an exchange filing today.

Following the receipt of the said CoR, Piramal Finance will stop conducting its business as a housing finance company (HFC), and has accordingly surrendered the HFC Certificate of Registration.

Stock price trend

Piramal Enterprises' share price recovered sharply in trade today following the announcement. After plunging over 9% in early trade amid a stock market crash, the NBFC stock recovered almost 6% from the day's low.

Piramal Enterprises' share price traded at ₹929, down 3.4%, around 12.55 PM. The stock had opened at ₹873, also its day's low, a fall of 9% from its previous close of ₹961.90 During the trade, the scrip touched a high of ₹943.80.

Latest developments

The company's administrative committee recently approved the issuance of secured, rated, listed, redeemable, non-convertible debentures (NCDs) of up to ₹100 crore along with a green shoe option to retain oversubscription of up to ₹200 crore. Overall, the company looks to raise ₹300 crore on a private placement basis.

The debentures are proposed to be listed on the Wholesale Debt Market (WDM) segment of the BSE and National Stock Exchange (NSE). These NCDs carry a coupon rate of 9.30% per annum, paid annually and on the redemption date, fixed as April 9, 2029.

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