Adhesives and constructing supplies maker Pidilite Industries plans to enter the lending enterprise, providing small worth retail loans.
To facilitate this, Pidilite Industries will purchase NBFC – Pargro Investments, beneath its Promotion Group, based on a regulatory replace.
“Pidilite Industries Ltd intends to ascertain a lending firm,” the corporate mentioned.
Over the subsequent two years, with a view to construct the brand new enterprise, the corporate expects to take a position as much as Rs 100 crore in tranches, by an optimum mixture of fairness and debt.
“The brand new companies will present credit score to their ecosystem to assist the expansion of their enterprise. This credit score might be primarily supplied within the type of small worth retail loans,” mentioned Pidilite, makers of Fevicol, Dr Fixit, Fevikwik and M-Seal. .
Pargro might be acquired by Pidilite by a wholly-owned subsidiary beneath a Share Buy Settlement (SPA) to be entered into by March 31, 2024.
“Pargro might be acquired at a good worth of Rs 10 lakh crore, which is equal to the liquid investments current in Pargro’s books as of October 31, 2023, as per the valuation carried out by an impartial valuer,” it mentioned.
She added that the acquisition might be topic to authorized and regulatory compliance.
“The transaction might be accomplished after executing the sale and buy settlement and needed paperwork and after acquiring needed approvals from the Reserve Financial institution of India,” Pidilite Industries mentioned.
Earlier, Pidilite Industries made its foray into the paints section with the launch of Haisha paints in choose geographies.
Pidilite Industries on Wednesday reported a 35.76 per cent rise in consolidated internet revenue to Rs 458.53 crore for the second quarter ended September 2023. Its income from operations rose 2.15 per cent to Rs 3,076.04 crore.
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(Tags for translation)Pedilite Adhesives Producer
