How to make a Preliminary Information Memorandum (PIM)?

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 What is PIM? 

PIM that is Preliminary Information Memorandum is a crucial document before starting any project, whereas I'm in Merchant banking I look towards this in that way. But in lay man work it can be any project. 

In this blog I will share all the steps necessary for making a PIM and I hope you learn to organize things through this reading of blog, if not anything. 


First thing you need to do is have a deep understanding and reading of all the document and information available. This will help you to organize the things when each and every point comes.

The example in this blog will be of a NBFC analysis.

1. So the first thing we will do is write all the information that is general to know for basic understanding of the company or any other kind of information. 

To give example, you can write when the company was established, any demerger or merger or reorganization, current fund raise or equity distribution or IPO. 

Then this may also include there basic financials for example in case of a NBFC it can include AUM, Disbursement amount and net work. 

If you want to have a detailed knowledge of NBFCs financial analysis go on label and find NBFCs label and all the blog there are my pure understanding of NBFCs Work and it will help you learn a lot and understand the working of a analyst.

2. Second thing comes to know about the members of the Company, and their experience and qualification. It is really crucial to know about the management plus their shareholding in the company. 

With this as we come to this point the promoter or promoter group shareholding should also be a key point to notice and evaluate it may seems like a heavy work but most of the listed company clarify this is there annual report. 

The above two steps will make sure that you almost have known 70% about the company and all the information you need next will be surrounded around the above two. 

3. Now the next point is the crucial details about the company that differs from project to project. For example in NBFC I will look which all sectors they are lending are they focusing on SME or MSME or only lending to big players of the market. 

Then with whom all it has tie-ups like nowadays co-lending is very popular I will keep a list of all co-lending partners.

4. Now the focus comes back to all the recent activities and it's result, all the new ventures the company came into and it's effect on current project that we are analyzing. It's very basic and don't need detailed analysis. 

5. Fifth point would be our main work that is financial analysis, the balance sheet, statement of profit and loss and non other than cash flow will help you in analysis. 

What kind of analysis, as I have taken the example of NBFC I will look for total disbursement and the NNPA and GNPA that  is non performing asset. 

Plus their growth over the years and their profit ratio out the income that is truly a point of consideration. 

At the end it is more likely a financial summary for all those who will look at PIM to have a insight about the project.

6. This point is all of not that necessary but as a financial analyst and project manager you need to see the connections of the company and how these connection will help the company to grow. Their products and competition is included in this. 

And when we look at this we also look how much does this company have borrowed or lend, this will also be seen in connection with the above so called connections and their means in the growth of the company. 

All these points are crucial and all other points that you feel like including will depend on the project.



PIM is a document which is made in the starting of the project and it is crucial for a bank as a lender and also to a project management agency in different ways.

But for a financial analyst it provides a lot of information and help when moving forward in busy times.

I hope this blog gives you a key to organize your work from the very starting and a skill for clarity in future project work.

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