On Wednesday Piramal Enterprises Limited said it plans to raise Rs 1,000 crore from the maiden issuance of Non-Convertible Debentures (NCDs) to fund business growth.
The tranche I consists of a Rs 200 crore base issue and a green-shoe option of up to Rs 800 crore, for a total of Rs 1,000 crore, which is within the shelf limit of Rs 3,000 crore.
The issue opens for subscription on October 19 and closes on November 2, 2023, with an option of early closure as per the Securities and Exchange Board of India norms.
According to Jairam Sridharan, MD, Piramal Capital & Housing Finance Ltd, 60 per cent of the issue is reserved for high net-worth individuals and retail investors.
The secured, rated, listed, redeemable, non-convertible debentures with a face value of Rs 1,000 each are proposed to be listed on the BSE and NSE, with BSE being the designated stock exchange for the issue.
The issue has maturity/tenure options of 2 years, 3 years, 5 years and 10 years with annual coupon payment being offered across series I, II, III, and IV respectively.
The effective return for NCD holders in various categories ranges from 9 per cent to 9.34 per cent per annum.
At least 75 per cent of the net proceeds of the tranche I issue will be used for onward lending, financing, and repayment of interest and principal on the company’s existing borrowings, with the remaining 25 per cent used for general corporate purposes including branch expansion.
Piramal Enterprises Ltd is a non-deposit taking NBFC engaged in providing wholesale and retail lending primarily through standalone operations and its wholly-owned subsidiary Piramal Capital & Housing Finance Ltd (PCHFL).
The company’s consolidated operations are backed by a network of about 424 conventional branches, including 136 microfinance branches across 25 states and Union Territories.
