NCLT clears merger of Piramal Enterprises with unit, Anand Piramal named Chairman

The National Company Law Tribunal has approved the merger of Piramal Enterprises Ltd (PEL) with its wholly owned subsidiary Piramal Finance Ltd (PFL), the company said on Wednesday.

Anand Piramal will become chairman of Piramal Finance following the merger, while Ajay Piramal will continue to chair the Piramal Group, which includes finance, pharma, realty and philanthropic arms. Vice Chairperson Swati Piramal will also retain her role.

Since joining the group in 2019, Anand led Piramal’s pivot from wholesale real estate lending to a diversified non-bank lender and spearheaded its ₹34,250 crore ($4.1 billion) acquisition of Dewan Housing Finance Corp, the largest financial services resolution under India’s bankruptcy code.

Under his leadership, Piramal Finance’s retail and wholesale businesses have grown at over 50% CAGR over three years, with assets under management now at about ₹89,000 crore. The company reduced its legacy structured real estate book to under ₹5,900 crore from ₹43,500 crore in 2022.

Jairam Sridharan, previously managing director of the subsidiary, will head the merged entity as MD & CEO. Sridharan, an IIT Delhi and IIM Calcutta alumnus and former Axis Bank CFO, expanded Piramal Finance’s retail book to nearly ₹72,000 crore from ₹5,300 crore in four years, with its branch network growing to 517 from 14.

Piramal Finance, one of India’s largest affordable housing lenders, says it has served over 5 million customers across 26 states, primarily in semi-urban and rural markets. It offers home, personal, business, used car and construction loans.