The Piramal Group is all set to foray into the housing finance business.
Speaking to CNBC-TV18’s Nisha Poddar, Ajay Piramal, Chairman, Piramal Enterprises said they got their housing finance license in the first week of September and in the first three weeks they are already at Rs 200 crore in terms of disbursed loans.
The target is to take the loan book to Rs 15000 crore by 2020, he said.
He also clarified that at present they are not looking at inorganic route to grow Piramal Finance business because so far they have been able to grow well organically. Moreover, with the current valuations in the market, it would be difficult to justify inorganic growth, he said. However, going forward in the mid-term they aim to list the financial services business as a separate listed entity, he said.
Talking about the Shriram-IDFC merger, he said their group has a history of looking at shareholder interest and the same strategy will apply for the merger as well and that they would do whatever is in the best interest of Piramal and Shriram Group’s shareholders. He is doubtful of the deal going through by first week of October.
He also confirmed that Piramal Enterprises is looking at various options including QIP to raise funds upto Rs 5000 crore.
When asked how much funds would the JV with Bain look at raising, he said anywhere between USD 750 million to a billion dollars. The JV would look at buying distressed assets. The assets could be in sectors like steel, cement, pharma, auto ancillary etc, said Piramal.