The board approved the issuance of up to 82.94 lakh warrants, with each warrant carrying the right to subscribe to one fully paid-up equity share of face value ₹2. The warrants will be issued at ₹2,110 each, including a premium of ₹2,108 per share, for an aggregate consideration of up to ₹1,750.03 crore.
The issue is proposed to be made on a preferential basis through private placement and is subject to the requisite statutory and regulatory approvals, including shareholders’ approval.
Nithyam Realty to hold 3.53% after full conversion
Nithyam Realty, which currently holds no shares in Piramal Finance, will receive all 82.94 lakh warrants under the proposed issue.If all the warrants are fully exercised, Nithyam Realty’s holding will stand at 3.53% of the company’s equity share capital on a fully diluted basis, according to the filing.
The floor price for the preferential issue, determined under the applicable Securities and Exchange Board of India (SEBI) regulations, is ₹2,085.06 per share. The approved issue price of ₹2,110 is therefore ₹24.94, or around 1.2%, above the floor price.
25% payable upfront; warrants valid for 18 months
Nithyam Realty will pay 25% of the warrant issue price at the time of subscription, with the remaining 75% payable when the warrants are exercised.
The warrants will have a tenor of 18 months from the date of allotment and can be exercised in one or more tranches during this period. Any warrants that remain unconverted at the end of the tenure will lapse, with the amount already paid on such warrants being forfeited.
The warrants, as well as the equity shares issued upon their conversion, will be subject to the lock-in requirements prescribed under SEBI regulations.
Shareholder approval on Sept 19
The non-bank lender has entered into an investment agreement with Nithyam Realty in connection with the preferential issue. The company said the agreement does not grant any special rights to the subscriber, such as the right to appoint directors or restrict changes in the company’s capital structure.The proposed preferential issue is subject to shareholders’ approval and ‘in-principle’ approval from the stock exchanges. The company has scheduled an Extraordinary General Meeting (EGM) for September 19, 2026, to seek shareholders’ approval.
Piramal Finance also said the preferential issue is not a related-party transaction under the SEBI Listing Regulations, subject to compliance with the applicable SEBI ICDR requirements.
Q1 results
Piramal Finance reported a 67% year-on-year increase in consolidated profit after tax (PAT) to ₹461 crore for the June quarter, while revenue from operations rose 27.7% to ₹3,368 crore. Its Assets Under Management (AUM) increased 25% year-on-year to ₹1,06,940 crore, with AUM excluding the discontinued legacy business growing 32%.
Retail AUM rose 32% to ₹91,249 crore, accounting for 85% of total AUM. Mortgage AUM increased 30% to ₹61,199 crore, while retail disbursements grew 44% to ₹12,527 crore. The company expanded its network to 780 branches across 607 cities in 26 states, while its customer base grew 24% to 6 million.
Profitability also improved, with Net Income Margin expanding 47 basis points year-on-year to 6.5% and the cost-to-income ratio declining to 52.5% from 65.6% a year earlier. Gross non-performing assets stood at 2.4% and net non-performing assets at 1.6%.
Piramal Finance had also received board approval for a fundraise of up to ₹4,000 crore, to be undertaken at an appropriate time subject to shareholder approval.
Shares of the company fell as much as 2.7% on Monday to an intraday low of ₹2,123.10 and were trading at ₹2,127 as of 12.07 pm, down 2.47%. The stock has, however, risen more than 29% so far in 2026 and nearly 61% over the last 12 months.
