Piramal Enterprises Sets the Stage for a ₹1,250 Million Capital Surge—NCDs in the Spotlight

Piramal Enterprises Ltd (PEL), a prominent and diversified non-banking financial company (NBFC), announced today that its board of directors plans to consider issuing non-convertible debentures (NCDs) in two separate series, for a total of ₹1,250 million. The proceeds of one series would total ₹750 million, while the proceeds of the second series would total ₹500 million. 

 

This action is part of Piramal Enterprises' ongoing efforts to enhance financial flexibility in the business and to fund strategic growth initiatives. The Company has used the debt market to continually bolster its capital structure, as well as to fund its growing portfolio across retail and wholesale lending segments.

 

The board meeting, which will consider and eventually approve the NCDs, is expected to be held shortly. If the Board of Directors approve the issuance, the NCDs will be offered on a private placement basis, as the Company has done with respect to all its previous fundraising efforts. The proceeds from the NCDs will likely be used for corporate purposes, refinancing existing debt, and to support new business opportunities. 

 

This announcement follows Piramal Enterprises' strong performance in recent quarters, including robust and significant year-on-year traded revenue and net profit. The issuance of NCDs is viewed as a preemptive act to maintain liquidity and support Piramal Enterprises' overall competitive positioning in this increasingly competitive NBFC sector. 

 

Source: TradingView (Reuters)