Piramal Finance, which is looking to divest its stakes in the Shriram insurance companies -- Shriram Life Insurance and Shriram General Insurance -- will use the proceeds to bolster its core lending business, said Managing Director and CEO Jairam Sridharan.
Speaking to Moneycontrol on the sidelines of Piramal Finance’s listing on the NSE on November 7, Sridharan said, “At some point in the distant future, once we are fully established as a lender, we may look at deploying capital into other businesses. But for now, our clear focus is to channel all available capital into lending, and that’s exactly what we’re doing.”
The NBFC, which currently holds 20 percent in Shriram Life Insurance and 18 percent in Shriram General Insurance, plans to exit its insurance holdings entirely in one go, rather than through a phased sale. The move is part of Piramal Finance’s broader strategy to reallocate resources toward lending, a business Sridharan described as “capital-hungry” and central to the company’s long-term growth.
He said the company aims to deploy capital where it can generate stronger leverage and returns, primarily across retail and wholesale lending segments. The decision to sell its insurance stakes, he clarified, was not driven by performance concerns but by a sharper focus on its lending franchise.
“The Shriram group runs a fantastic set of businesses, and we admire what they have achieved,” Sridharan said. “But at this stage, we need capital for our core business, and we would rather recycle capital into lending than hold minority stakes in adjacent financial services.”
While discussions on the divestment are ongoing, the company has not set a specific timeline for completion. Sridharan emphasised that Piramal Finance is under no immediate liquidity pressure and intends to execute the sale “when the right opportunity and valuation align.”
The company also ruled out plans to raise fresh equity or bring in new strategic or foreign investors at this point. “We have 46 percent ownership with the family, a very long-term ownership structure. We are perfectly happy with that,” he said.
On going live with the gold loan business, Sridharan said, it will likely launch its gold loan business by the end of the financial year. The new vertical will form part of the company’s effort to expand its retail lending portfolio, alongside existing products such as home loans, car loans, unsecured lending, and microfinance.
“We’re currently focused on building the groundwork, setting up the infrastructure, developing the technology, and putting the right leadership team in place, and that’s taking time.”
Piramal Finance was relisted on the National Stock Exchange (NSE) on November 7, following the merger of diversified NBFC Piramal Enterprises with its wholly owned subsidiary, Piramal Finance. Piramal Enterprises had delisted in September 2025 as part of the restructuring, with the merged entity now making its market debut.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
