By Accommodation Times Bureau
Piramal Capital & Housing Finance Limited (‘PCHFL’) has been assigned a long-term rating of ‘CARE AA+; Stable’ for its debt instruments post the scheme of amalgamation of Piramal Finance Limited (‘PFL’) and Piramal Capital Limited (‘PCL’) with PCHFL (erstwhile Piramal Housing Finance Limited).
PCHFL has now become a wholly owned subsidiary of Piramal Enterprises Limited (PEL) and is the flagship entity for the Group’s financial services business.
This rating recognizes the strong performance across both real estate and non-real estate sectors over several quarters, takes into account robust risk management metrics, astringent in-house asset management and monitoring process that has kept NPAs in check despite a strong ramp-up of the lending business.
The rating also reflects conscious and sustained effort to diversify the asset base even as the scale of business increased and add granularity to the loan book through a foray into retail Housing Finance, lending more towards Construction Finance and lease rental discounting under real estate segment, expansion to multiple sectors by the Corporate Finance Group and focus on mid-market corporate through the Emerging Corporate Lending vertical.
Khushru Jijina, Managing Director, Piramal Capital & Housing Finance, said, “The company will continue to grow our real estate lending business with a foray into hospitality and an increased exposure to Lease Rental Discounting.”
The rating also factors in a highly successful QIP and Rights Issue undertaken by PEL during the past financial year of ~INR 7,000 crore, of which INR 5,000 crore has been allocated to the financial services business. On the liability side, the ratings reflect robust treasury management with low levels of leverage.