Piramal Enterprises Sets Ambitious AUM Growth Target

Piramal Enterprises aims to boost its assets under management (AUM) by 15% to Rs 80,000 crore in the current fiscal year, despite a sharp rundown in its legacy wholesale business. The company is focused on increasing retail loans and expects overall AUM to nearly double by FY28.

Non-bank lender Piramal Enterprises aims to boost its growth rate to 15% and increase its assets under management (AUM) to Rs 80,000 crore this fiscal year, according to Chairman Ajay Piramal.

The company reported an 8% growth in the AUM at a consolidated level last fiscal year.

The target is to increase the overall AUM by 15% to Rs 80,000 crore, despite a sharp rundown in the legacy wholesale business, Piramal informed shareholders during the annual general meeting on Monday.

He stated that the legacy AUM would be less than 10% of the total AUM by the end of FY25 and less than 5% by FY26.

Currently, 70% of the overall AUM comprises retail loans, deemed the 'growth business,' which recently crossed Rs 50,000 crore.

Additionally, the overall AUM is set to nearly double in three years, reaching Rs 1.5 lakh crore by the end of FY28 from the Rs 80,000 crore target by end-FY25.

The retail business share in the overall AUM will grow to 75% by FY28, while the wholesale 2.0 book, including cash flow and asset-backed exposures in realty and mid-market sectors, will also grow.

In FY24, the company faced a loss of Rs 1,684 crore due to provisions for investments in alternative investment funds. However, Piramal noted that most of these provisions are expected to be recovered, as seen in the January-March quarter results of FY24.

He also confirmed that the growth business is 'on track' to achieve steady profitability.

(With inputs from agencies.)