Piramal Finance and IIFL in Exploratory Discussions Regarding Potential MFI Partnership

Piramal Finance and IIFL Finance in Talks for Microfinance Deal

Piramal Finance and IIFL Finance are reportedly engaged in early-stage talks to strike a deal in the microfinance business. Sources indicate that Piramal Finance is conducting due diligence on IIFL Finance's MFI business, IIFL Samasta Finance.

Due diligence on IIFL Samasta is being conducted by EY. Sources suggest that the owners of the two groups have had multiple rounds of discussions, with the top managements of both entities in regular contact. IIFL Capital and DAM Capital are serving as bankers to the deal.

Valuations are yet to be agreed upon, with Piramal Finance reportedly seeking a price-to-book multiple of 2.2-2.5x. However, IIFL Finance may seek higher valuations due to the green shoots in the MFI business. IIFL Samasta's net worth stood at Rs 1,800 crore as of December 31, 2025, translating to a deal value of Rs 4,000 – 4,500 crore.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Key Financial Highlights of IIFL Samasta

• Loan book: Rs 6,600 crore in Q3 FY26
• Capital adequacy: 30 percent
• Net profit: Rs 18.6 crore in Q3 FY26
• Net loss: Rs 136 crore in Q3 FY25

The deal assumes importance for both Piramal Finance and IIFL Finance, as it would expand Piramal's retail offerings and boost IIFL Finance's tier-1 equity capital. The deal would also be the first major M&A transaction in the microfinance industry since mid-2024, when the sector started grappling with asset quality issues.