Piramal Enterprises rallies as company denies loan default buzz

NEW DELHI: Shares of Piramal Enterprises were trading higher after the company on Sunday said it “strongly refutes baseless rumours” regarding loan defaults by real estate developers to its lending arms Piramal Capital & Housing Finance.

The scrip gained as much as 4 per cent to Rs 1977.65 on BSE.

In a regulatory filing, the company said it “would categorically like to state that we have an extremely robust loan processing and recovery process including risk management and asset monitoring system."

Developers like Lodha, Omkar, Vatika and Embassy referred to in the rumours are part of the lending portfolio but have never defaulted on any interest or repayment obligation to PEL/PCHFL, it said.

PCHFL, the wholly owned subsidiary of Piramal Enterprises, provides various financing solutions in the real estate sector such as early stage private equity, structured debt, senior secured debt, construction finance, flexi lease rental discounting and housing finance.

"Among others the rumours relate to loan defaults to PEL/Piramal Capital & Housing Finance Limited (PCHFL) by real estate developers such as Lodha, Omkar, Vatika, Embassy, Radius, Nahar, Aristo, Supertech etc," it said in a statement.

Additionally, contrary to rumours, PCHFL has not extended any loan to developers like Aristo, Nahar, Supertech, Radius and Amrapali. Therefore, there is no question of any default on loan repayments by these developers, the company added in a release.