FY18 is likely to be another strong year for Piramal Enterprises (PIEL). In 1HFY18, the loan book grew ~70% YoY driven by all segments, especially non-real estate corporate financing. The healthcare business too witnessed improving traction. Consolidated PAT was up 28% YoY in 1HFY18. We expect 2HFY18 to be as strong, with 28% PAT YoY growth to INR9.5b. On account of a strong growth outlook for FY19 and FY20 (35% CAGR in our view), PIEL recently raised INR50b via Compulsorily Convertible Debentures (CCDs) and also plans to raise additional INR20b via rights issue, of which the promoters have agreed to underwrite 90%. We believe much of this capital will be used to support growth in the financing business.