Anand Piramal takes over as chair of Piramal Finance post merger of parent with co

Mumbai: Anand Piramal has assumed the role of chairman of Piramal Finance following its absorption of parent company Piramal Enterprises, effective from 16 September 2025.

The National Company Law Tribunal had approved the merger of Piramal Enterprises with its wholly-owned subsidiary on 10 September 2025.

Since joining in 2019, Anand Piramal spearheaded the Retail Lending platform, led the ₹34,250 crore acquisition of erstwhile Dewan Housing Finance Ltd or DHFL (the largest financial services resolution under IBC), and steered the company’s during its pivot from wholesale real estate lending to a diversified, technology-led non-banking finance company, overseeing the reduction of the legacy structured real estate book from ₹43,500 crore in 2022 to less than ₹5,900 crore today, the company said in a release.

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The DHFL transaction was executed through a reverse merger, wherein Piramal Capital & Housing Finance merged into DHFL, and the combined entity became a wholly owned subsidiary of Piramal Enterprises. In April 2025, Reserve Bank of India (RBI) approved the company’s transition from a Housing Finance Company (HFC) to a Non-Banking Financial Company – Investment and Credit Company (NBFC-ICC), following which it was renamed Piramal Finance. The parent company, in May 2025, announced a proposal to merge the two companies to streamline operations and improve capital efficiency.

As Anand Piramal assumes the role of chairman of the merged entity, Ajay Piramal will continue to chair the Piramal Group, which comprises Piramal Finance, Piramal Pharma, Piramal Realty, and Piramal Foundation. Dr. Swati Piramal will remain vice chairperson of the Group.

Jairam Sridharan, managing director and chief executive officer of the erstwhile subsidiary, will continue to head the merged entity in the same role.

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Experienced hand

With nearly two decades of experience in domestic and international retail finance, Sridharan, who was previously chief financial officer of Axis Bank, joined Piramal Finance in December 2019. During his tenure, the retail business of the NBFC grew from a ₹5,300 crore book to nearly ₹72,000 crore, with branches expanding from 14 to 517 and employees from 1,500 to over 15,500.

Categorised as an upper-layer NBFC by RBI, Piramal Finance’s AUM grew 17% in FY25. The new business, consisting of retail and MSME, or ‘growth’ business as the NBFC calls it, has grown 50% on a compound annual growth rate (CAGR) basis over the last three years, now accounting for 93% of the total assets.

The authorised share capital of the merged entity is ₹31,245 crore, divided into ₹29,299 crore worth of equity shares and ₹21 crore of unclassified shares with a face value of ₹2 each. The capital also includes ₹1,925 crore of non-convertible redeemable cumulative preference shares with a face value of ₹100. The record date for the share exchange was 23 September, with shareholders of Piramal Enterprises being allotted shares of Piramal Finance in the ratio of 1:1. Other debt securities of Piramal Enterprises were also transferred to Piramal Finance. Shares of Piramal Enterprises last traded on Monday, closing at ₹1,133 on the National Stock Exchange. Piramal Finance is now waiting for permission from the bourses to list the shares of the merged entity.

As at the end of June 2025, Piramal Finance’s capital adequacy ratio was 19.3%, which is expected to increase by 245 basis points after the merger.

As per the deck for investor roadshows, the merged entity aims to grow its assets under management (AUM) by 25% in FY26 from ₹81,000 crore as at the end of FY25. As of 30 June, total AUM stood at ₹85,756 crore.

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Lending footprint

New business, comprising the retail and Micro, Small & Medium Enterprises (MSMEs) segments, is seen growing 30% in FY26, with the share of retail loans growing up to 85% of the total AUM by the end of the financial year, from around 80% as of 31 March 2025.

The NBFC has served over 5 million customers, primarily in underserved segments such as affordable housing and Micro, Small, and Medium Enterprises. It is the largest affordable housing lender in the country and also provides loans against property, personal, business, digital, used car, and construction loans, largely in metro-adjacent, semi-urban, and rural markets.

In wholesale lending, the company offers asset-backed, data-driven solutions across real estate and non-real estate sectors, with a focus on mid-segment residential projects and capital solutions for mid-market corporates.

“Building on this legacy, the company will continue its mission to empower semi-urban and rural communities with affordable and meaningful credit,” the release said.