Piramal Enterprises Ltd (PEL) will set aside Rs 3,164 crore of its exposure in certain alternative investment funds (AIFs) following the Reserve Bank of India tightening its rules on exposures to such funds.

The Ajay Piramal group firm, an NBFC regulated by the RBI, on Thursday disclosed that it along with the housing arm Piramal Capital & Housing Finance Ltd has investments in AIF units valued at Rs 3,817 crore as of November 30, 2023.

PEL said Rs 653 crore from this sum was invested in AIFs that have no exposure to any of its debtor companies.

However, other AIFs have made Rs 1,737 crore worth of downstream investments in three entities that are or were in the last 12 months debtor companies of PEL on a consolidated basis.

“Taking a conservative view of the regulatory intent, PEL intends to adjust the entire Rs 3,164 crore in our financial statements through capital funds or provisions. We are engaging with relevant stakeholders to finalise the details,’’ the company said in a regulatory filing.

PEL said its consolidated net worth stood at Rs 28,710 crore as of September 30, 2023, with a capital adequacy ratio standing at 31 per cent.

``We remain confident of full recovery of the underlying downstream investments in the impacted AIF units. PEL (consolidated) has received Rs 905 crore so far as repayment of interest and principal on these units,’’ it said.

According to a brokerage firm Emkay report, PEL will be providing for this entire Rs 3,160 crore; as a result, reported P&L losses in 2023-24 should see a material impact and estimated losses would be Rs 2,200 crore in 2023-24.

Earlier this week, the Reserve Bank barred banks and NBFCs from investing in any scheme of AIFs having investment in companies that have taken loans from the lenders concerned in the past 12 months to curb the “evergreening” of loans.

Further, it has directed lenders that such investments would be required to be liquidated within 30 days.

Shares of PEL which came under pressure after the RBI circular on Friday ended flat at Rs 882.10 on the Bombay Stock Exchange.