Mumbai, May 13 (PTI) Piramal Alternatives on Monday announced a Rs 600 crore investment for an undisclosed stake in microfinance company Annapurna Finance.

The investment includes a secondary stake buy from an existing shareholder and also providing it with the non-core tier-II capital, a company statement said.

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It did not specify the stake bought or share a break-up of how the Rs 600 crore investment amount is divided.

The "structured capital solution" is aimed at fuelling the risk-calibrated growth in Annapurna's assets under management, the statement said.

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Odisha-headquartered Annapurna had an AUM of USD 1.25 billion as of March 31, 2024. It has a presence through 1,372 branches in 20 states and also lends to small micro, small and medium businesses.

"Microfinance as a retail asset class has grown at a CAGR (compound annual growth rate) of 32 per cent over the last decade and is expected to continue the high growth trajectory," Kalpesh Kikani, the chief executive officer of Piramal Alternatives, said.

Annapurna Finance managing director and chief executive officer Gobinda Chandra Pattanaik said the growth capital from Piramal will help in business diversification and consolidating position in key markets.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)