Piramal Enterprises to Raise ₹1,000 Crore via NCDs

Piramal Enterprises to Raise ₹1,000 Crore via NCDs
Piramal Enterprises to Raise ₹1,000 Crore via NCDs
Piramal Enterprises to Raise ₹1,000 Crore via NCDs
Piramal Enterprises to Raise ₹1,000 Crore via NCDs

Piramal Enterprises to Raise ₹1,000 Crore via NCDs

Piramal Enterprises to Raise ₹1,000 Crore via NCDs

Piramal Enterprises to Raise ₹1,000 Crore via NCDs

Piramal Enterprises Limited, a prominent diversified non-banking financial company (NBFC) in India, is preparing to secure ₹1,000 crores through the issuance of Non-Convertible Debentures (NCDs). The base issue size for this Tranche I Issue is ₹200 crores, with a green shoe option of up to ₹800 crores, aggregating to ₹1,000 crores. The offering opens on October 19, 2023, and closes on November 2, 2023, with possible early closure or extension, following the regulations of the Securities and Exchange Board of India Issue and Listing of Non-Convertible Securities.

NCD Listing and Credit Ratings

The proposed NCDs are expected to be listed on the BSE and NSE, with BSE designated as the stock exchange for the issue. They have received [ICRA] AA (Stable) ratings from ICRA Limited and CARE AA (Stable) ratings from CARE Ratings Limited.

NCD Details and Options

Investors can apply for a minimum of ₹10,000 (i.e., 10 NCDs) and in multiples of ₹1,000 (i.e., 1 NCD). The NCDs offer maturity/tenure options of 2 years, 3 years, 5 years, and 10 years, with annual coupon payments available across series I, II, III, and IV. The effective yield for NCD holders in different categories ranges from 9.00% to 9.34% per annum.

Utilization of Proceeds

Out of the net proceeds from the Tranche I Issue, a minimum of 75% will be allocated for onward lending, financing, and the repayment/prepayment of interest and principal on the company’s existing borrowings. A maximum of up to 25% will be utilized for general corporate purposes.

Lead Managers

A. K. Capital Services Limited, JM Financial Limited, Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited), and Trust Investment Advisors Private Limited are serving as the lead managers for the issue.

Piramal Enterprises

Piramal Enterprises Limited is the flagship company of the Piramal Group, one of India’s prominent conglomerates. The company operates as a non-deposit-taking, RBI-registered systemically important NBFC, engaged in wholesale and retail lending. Its retail lending business is primarily conducted through its wholly-owned subsidiary, Piramal Capital and Housing Finance Company Limited (“PCHFL”), a housing finance company registered with the National Housing Bank (“NHB”).

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