Piramal Finance Limited has made significant progress in its fundraising efforts, securing $350 million from two major international development finance institutions as part of its comprehensive $500 million capital raising plan for FY26. The non-banking financial company announced that it has successfully obtained funding from the International Finance Corporation and the Asian Development Bank under its Sustainable Finance Framework.

Funding Structure and Sources

The $350 million funding comprises contributions from two key international institutions. The breakdown of the secured funding demonstrates strong institutional confidence in the company's growth strategy.

Sustainable Finance Framework

The funds have been raised under Piramal Finance's Sustainable Finance Framework, which is specifically designed to enable the company to expand credit access to underserved markets. This framework aligns with the development finance institutions' objectives of promoting financial inclusion and supporting economic development in emerging markets.

Remaining Fundraising Plans

Piramal Finance is actively pursuing the completion of its $500 million fundraising target for FY26. The company has confirmed that it is in advanced talks to raise the balance $150 million from select development finance institutions, indicating strong momentum in its capital raising activities.

Facility Terms and Drawdown Schedule

The secured facilities are structured as five-year arrangements that will be drawn in tranches between January and March 2026. This phased drawdown approach aligns with regulatory norms and provides the company with flexibility in managing its capital requirements. The staggered approach allows Piramal Finance to optimize the deployment of funds based on business needs and market conditions during the specified period.

Piramal Finance Limited announced that it has received favorable credit rating updates from CRISIL Ratings Limited across multiple financial instruments. The rating agency has assigned new ratings and reaffirmed existing ones, strengthening the company's credit profile in the market and marking a key milestone in the company's multi-year transformation into a scaled, diversified retail-focused lender.

CRISIL Rating Actions Overview

CRISIL Ratings Limited has taken comprehensive rating actions on Piramal Finance's various debt instruments and facilities. The rating agency assigned long-term credit ratings of CRISIL AA+/Stable to both the company's bank loan facilities and Non-Convertible Debentures, while reaffirming the existing A1+ rating on Commercial Papers.

Regulatory Compliance and Documentation

Piramal Finance has fulfilled its regulatory obligations by formally notifying both BSE Limited and National Stock Exchange of India Limited about the credit rating updates. The company submitted the required intimation under Regulation 30 and 51 of the SEBI Listing Regulations, with Company Secretary Bipin Singh signing the formal communication dated January 4, 2026. The notification includes copies of all rating letters received from CRISIL and confirms that the information will be made available on the company's website as per regulatory requirements.

CRISIL Rating Letters and Validation

CRISIL has issued separate rating letters for each instrument class, with specific validity periods and conditions. The bank loan facilities rating letter is signed by Associate Director Rounak Agarwal and Director Nivedita Shibu, requiring fresh revalidation if facilities are not availed within 180 days. The Non-Convertible Debentures rating carries similar validity conditions, while the Commercial Paper rating reaffirmation is valid for 60 calendar days for issuance purposes.

Company Performance and Growth Metrics

Piramal Finance has demonstrated strong operational performance with total outstanding borrowings of approximately ₹75,000 crore. The company raised nearly ₹21,000 crore in long-term funding and has achieved significant growth in its Assets Under Management (AUM), excluding legacy business, growing at a 40% CAGR over the last four years to about ₹86,000 crore. The total AUM stands at ₹91,000 crore.

Rating Significance and Strategic Impact

The CRISIL AA+/Stable rating indicates that securities with this rating are considered to have high degree of safety regarding timely servicing of financial obligations and carry very low credit risk. The stable outlook suggests that the rating is unlikely to change in the near term. According to Jairam Sridharan, MD & CEO, Piramal Finance, the rating "reinforces the progress Piramal Finance has made in building a resilient and diversified lending franchise" and "reflects our disciplined approach to risk management, governance, and technology-led execution."

Upper Layer NBFC Status and Business Model

Classified by the Reserve Bank of India (RBI) as an Upper Layer NBFC, Piramal Finance is among the fastest-growing large NBFCs. The company has served over 5 million customers across 26 states with a distinctive Phygital model that blends high-touch engagement across 13,000+ pin codes with high-tech solutions including machine learning models, agentic AI tools, and real-time dashboards. The rating reflects sustained improvements in asset quality, a granular retail loan book, strengthening profitability metrics, robust capitalisation, and a conservative liquidity position. The AA+/Stable rating significantly expands Piramal Finance's addressable long-term funding market and is expected to support its plans to scale AUM to over ₹1.50 lakh crore by FY28, while continuing improvement in profitability.