Pidilite Industries is planning to set up a Lending Business (New Business). The New Business would provide credit to its domain ecosystem to support their business growth. This credit will be provided primarily in the form of small value retail loans. To facilitate the above seamlessly, the Company has identified an existing NBFC Pargro Investments (Pargro), belonging to the Company’s Promoter Group. Pargro does not have any lending operations presently and is debt-free as on October 31, 2023.
Subject to all statutory and regulatory compliance, Pargro shall be acquired by the Company through a wholly owned subsidiary under a Share Purchase Agreement (SPA) to be entered on or before March 31, 2024. The acquisition of Pargro will be done at a fair value of up to Rs 10 crore, which is equivalent to the liquid investments lying in Pargro’s books as on October 31, 2023, as per valuation done through an independent valuer.
The transaction will be completed post execution of the SPA and necessary documents and upon obtaining the necessary RBI approvals. Over the next two years, to build the New Business, the Company expects to invest up to Rs 100 crore in tranches, through an optimum mix of equity and debt.
Pidilite Industries is a well-known name in the adhesives market.
Company Name | CMP |
---|---|
Tata Chemicals | 1090.70 |
SRF | 2568.70 |
Pidilite Inds. | 2949.85 |
Aarti Inds | 735.95 |
Gujarat Fluorochemic | 3554.55 |
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