Piramal Enterprises Taps Debt Market with ₹3 Billion NCD Bonanza-A Strategic Leap Forward

Piramal Enterprises Limited (PEL) has declared board approval to issue Non-Convertible Debentures (NCDs) in a cumulative size of ₹3 billion (₹300 crore) on private placement. The move, approved in today's board meeting, is an extension of the company's ongoing thrust to strengthen the balance sheet as well as give a push to future growth initiatives.

 

The NCD to be issued will be in two different series, providing investors with secured, rated, listed, and redeemable securities. The debentures will have a coupon rate of 9.12% & 9.19% per annum with payment of interest yearly and on redemption. The face value of every NCD will be ₹1 lakh and will be listed on the Wholesale Debt Market (WDM) segment of the BSE Ltd (BSE) / National Stock Exchange (NSE). The tenor in such debentures is around 822 days and 1188 days. Both the series' shall have an Issue size of Rs. 50,00,00,000 (Rupees Fifty Crore Only) along with a green shoe option to retain over-subscription upto Rs. 250,00,00,000 (Rupees Two Hundred and Fifty Crores). The Debentures shall be secured through a first ranking pari-passu charge by way of hypothecation over the Hypothecated assets (excluding Excluded Assets both present and future) of Company.

 

This decision comes at a time when Piramal Enterprises has been showing signs of financial strength, with a robust turnaround in the last quarters. Piramal Enterprises reported a net profit of ₹38.60 crore in the December 2024 quarter, after posting a massive loss in the same quarter of the previous year.

 

The proceeds from this NCD issue are anticipated to improve liquidity, finance current business operations, and offer additional resources that can be leveraged to fuel future growth. The company is committed to having a robust capital structure and returning value to its stakeholders.

Source: India Infoline (IIFL)

Source: India Infoline (IIFL)Piramal Enterprises Limited (PEL) has declared board approval to issue Non-Convertible Debentures (NCDs) in a cumulative size of ₹3 billion (₹300 crore) on private placement. The move, approved in today's board meeting, is an extension of the company's ongoing thrust to strengthen the balance sheet as well as give a push to future growth initiatives.

 

The NCD to be issued will be in two different series, providing investors with secured, rated, listed, and redeemable securities. The debentures will have a coupon rate of 9.12% & 9.19% per annum with payment of interest yearly and on redemption. The face value of every NCD will be ₹1 lakh and will be listed on the Wholesale Debt Market (WDM) segment of the BSE Ltd (BSE) / National Stock Exchange (NSE). The tenor in such debentures is around 822 days and 1188 days. Both the series' shall have an Issue size of Rs. 50,00,00,000 (Rupees Fifty Crore Only) along with a green shoe option to retain over-subscription upto Rs. 250,00,00,000 (Rupees Two Hundred and Fifty Crores). The Debentures shall be secured through a first ranking pari-passu charge by way of hypothecation over the Hypothecated assets (excluding Excluded Assets both present and future) of Company.

 

This decision comes at a time when Piramal Enterprises has been showing signs of financial strength, with a robust turnaround in the last quarters. Piramal Enterprises reported a net profit of ₹38.60 crore in the December 2024 quarter, after posting a massive loss in the same quarter of the previous year.

 

The proceeds from this NCD issue are anticipated to improve liquidity, finance current business operations, and offer additional resources that can be leveraged to fuel future growth. The company is committed to having a robust capital structure and returning value to its stakeholders.

 

Source: India Infoline (IIFL)