Pidilite intends to enter the lending market and purchase the NBFC of the promoter group
The firm intends to focus on modest value retail loans as its credit line.
On November 8, adhesive producer Pidilite Industries announced its intention to get into the lending market with a concentration on small retail loans.
"The new company would provide recognition to its domain ecology in order to bolster their expansion. Small value retail loans will be the main way that this credit is offered, according to a press release from Pidilite.
The firm announced that it intends to purchase Pargro, a non-banking financial corporation (NBFC) owned by the promoter group. We have located an NBFC Pargro Investments Private Limited that is now operational and is a member of the promoter group of the business. As of October 31, 2023, Pargro is debt-free and does not have any loan activities, the firm said in a news statement.
It is intended to complete the purchase of the promoter group NBFC by March 31, 2024, at an estimated cost of Rs 10 crore. "After the SPA and relevant documents are executed and the required RBI approvals are obtained, the transaction will be finalized," the business said.
In addition, the corporation intends to spend Rs 100 crore in several tranches after establishing the business.
"The company hopes to invest up to Rs 100 crores in tranches, through an optimal mix of equity and debt, over the next two years in order to establish the new business," Pidilite said.
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