Piramal Capital eyes buyouts worth $600m in NBFC space; targets DHFL's porfolio: Report
In June, Piramal Enterprises sold its entire stake (nearly 10 percent) in Shriram Transport Finance to institutional investors for Rs 2,300 crore
Jul 29, 2019 / 02:23 PM IST
Piramal Capital & Housing Finance, along with strategic partners, is looking at portfolio buyouts worth $500-600 million in FY20 from non-banking finance companies (NBFCs).
“Piramal, along with CPPIB and Goldman Sachs, is looking to acquire the portfolios of NBFCs to the tune of $500-600 million,” a source told The Economic Times.
Moneycontrol could not independently verify the story.
The company, a subsidiary of Piramal Enterprises, is looking to acquire the portfolios of Dewan Housing Finance (DHFL) and Altico, the report said.
“The sale of its investment in Shriram Transport Finance has created an additional liquidity pool that the company can leverage for M&As and portfolio buyout opportunities,” a source told the publication.
In June, Piramal Enterprises sold its entire stake in Shriram to institutional investors for Rs 2,300 crore. The company is also considering exiting its investment in Shriram Capital and Shriram City Union Finance, media reports suggest.
NBFCs have been looking to sell their portfolios or stakes in their companies after a liquidity crunch hit the sector in September 2018.
Media reports suggest that apart from Piramal, private equity firms Cerberus Capital, Lone Star and Oaktree have expressed interest in acquiring a stake in DHFL.