Piramal Enterprises Ltd. said its subsidiary Piramal Alternatives Trust agreed to acquire a 10.39% stake in Annapurna Finance Private Ltd. for 300 crore Indian rupees ($36 million) in cash.

Piramal Alternatives will acquire the stake in Odisha-based Annapurna Finance via purchase of equity shares and subscription to optionally convertible debentures, the Indian conglomerate said in a stock exchange announcement.

Annapurna Finance, established in 2009, is a non-banking financial company-micro finance institutions (MFIs) and it is one of the top 10 MFIs in India, with an asset under management (AUM) of 9,233 crore rupees as of September 2023, according to the statement.

Piramal Enterprises said the non-bank lender offers products ranging from micro finance (86% of AUM) to secured and unsecured medium and small enterprises loans (14% of AUM). The company has more than 1,275 branches and a customer base of over 2.5 million spread across 20 states, it added.

Annapurna Finance’s total income stood at 1,570 crore rupees in FY23, up from 1,152 crore rupees a year earlier, according to the statement.

The transaction, expected to be completed before 31 March, is subject to receipt of regulatory approval.

Note: $1 = 83.1407 Indian rupees

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