Piramal Finance CEO Jairam Sridharan revealed the company's strategic approach to acquisitions, stating the lender was targeting deals in microfinance, gold loans and MSME lending, backed by its rising stock price. According to reports from CNBC TV18, Sridharan emphasized that the company doesn't need cash for acquisitions but requires a strong stock price, which they currently possess. The CEO noted the company was 'in multiple conversations' with potential transactions possible 'in the next 12-18 months', while stressing that nothing is certain.
Piramal Finance's stock has risen about 80% over the past year, significantly strengthening the company's position for potential acquisitions. As reported by CNBC TV18, Sridharan explained that a stronger share price provides better currency to fund acquisitions using the company's own stock. The CEO noted this approach is not something to chase actively, stating it happens at the right time when there's a fit of values and valuation.
The company recently raised around ₹3,850 crore through a Qualified Institutional Placement (QIP), a route that allows listed companies to raise money by selling shares to institutional investors. According to CNBC TV18, this capital will largely support organic growth, which Sridharan estimates at about 25%. The CEO also addressed broader economic conditions, noting the MSME sector has proved more resilient than expected at the start of the financial year despite uncertain geopolitical tensions and volatile oil prices.
On interest rate expectations, Sridharan indicated the Reserve Bank of India is likely to lean towards raising rates, with a hike now expected around February. As reported by CNBC TV18, he noted that chances of an earlier move in December had been rising, linked to rate trends in the United States. The CEO also addressed asset quality in gold loans, stating the customer base has shifted from being a marker of financial distress to functioning more as working capital finance, which should support better asset quality going forward.
