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Piramal Capital & Housing Finance Limited (PCHFL) is currently seeking buyers for a loan portfolio valued at INR 1,625 crore. The loans were extended to Transcon Sheth Creators, Sheth Creators, and Homemakers. PCHFL has invited bids from asset reconstruction companies, non-banking financial companies (NBFCs), and financial institutions on an upfront cash payment basis. The company has been focusing on reducing its wholesale loan book while shifting towards expanding its retail lending operations. This strategy follows Piramal Enterprises Group's restructuring and its ongoing efforts to address substandard wholesale loans.
Piramal Capital & Housing Finance Limited (PCHFL) is actively seeking potential buyers for loans amounting to INR 1,625 crore, as part of its strategy to divest a loan granted to Transcon Sheth Creators and Sheth Creators & Homemakers. In pursuit of this objective, PCHFL has invited bids from asset reconstruction companies, non-banking financial companies (NBFCs), and other financial institutions. The proposed sale is based on an upfront cash payment, with interested bidders required to submit their offers. Advertisement
PCHFL has been strategically working towards reducing its wholesale loan book to place greater emphasis on its retail lending business. Prospective bidders for this INR 1,625 crore loan portfolio had the opportunity to submit an expression of interest alongside an earnest money deposit of INR 50 crore. The due diligence window for this transaction closed on March 11, 2025.
This move aligns with PCHFL's objective of strengthening its financial position. The company reported gross non-performing asset (GNPA) and net non-performing asset (NNPA) ratios of 2.8% and 1.5%, respectively, as of December 2024. With total assets approximating INR 90,000 crore, the Piramal Enterprises Group operates its financial services through three distinct verticals: real estate financing, which includes construction finance and lease rental discounting for established developers; corporate mid-market lending aimed at mid-tier enterprises; and housing finance in addition to other retail loan offerings.
The group underwent significant restructuring in 2022 when it demerged its pharmaceutical business into a separate entity called Piramal Pharma Limited (PPL) and merged PHL Fininvest into Piramal Enterprises Limited (PEL). Following this reorganisation, PEL transformed into a non-banking financial company (NBFC) with PCHFL as its wholly-owned subsidiary.
The management had informed analysts earlier this year that the company had successfully reduced its wholesale legacy loan book by INR 1,700 crore on a quarter-on-quarter basis during the December 2024 quarter. The ongoing efforts to offload substandard wholesale loans are in line with PCHFL's strategy to streamline its portfolio and strengthen its focus on retail lending.
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