Piramal Capital raises INR 4050 Crores via issuance of Non-Convertible Debentures

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Piramal Capital raises INR 4050 Crores via issuance of Non-Convertible Debentures. Piramal Capital & Housing Finance Limited (PCHFL), a wholly-owned subsidiary of Piramal Enterprises Limited (PEL or the Company), has raised INR 4,050 Crores through issuance of long-term, five-year Non-Convertible Debentures (NCDs) in two tranches.

The first tranche of the NCD issue amounting to INR 2,000 Crores opened on March 10, 2021 with a pay-in on March 12, 2021. The second tranche of the remaining INR 2,050 Crores opened on March 18, 2021 with a pay-in on March 19, 2021. Leading rating agency, CARE Ratings has assigned an ‘AA’ rating for both the issuances.

Mr. Rajesh Laddha, Executive Director, Piramal Enterprises Ltd. said, “Since the beginning of FY 2020, we have significantly transformed the liabilities profile towards more stable, long-term sources of funds. The Company has raised over INR 50,000 Crores since Apr-2019, through multiple long-term borrowings and equity transactions, thereby materially strengthening the Balance Sheet. With net debt-to-equity of less than 1x times, there is adequate growth capital available for both our business for the coming few years. The five-year NCD issuances of INR 4,050 Crores re-affirm the significant improvement of our liabilities side and strength of our balance sheet. We are now well positioned to tap growth opportunities across both our Financial Services and Pharma businesses.”

Since the beginning of FY2020, despite a highly volatile environment, PEL has significantly transformed its liabilities profile towards more long-term borrowings. As part of this transformation, the Company has raised over INR 50,000 Crores since Apr-2019, through:

·         Several equity transactions leading to inflows of over INR 18,000 Crores, which include:

o   Preferential allotment to CDPQ of INR 1,750 Crores.

o   Rights Issue of INR 3,650 Crores, issue was over-subscribed 1.15 times.

o   Sale of DRG for a gross consideration of ~INR 6,950 Crores, in the midst of COVID-19 crisis in the U.S.

o   Shriram Transport stake sale for INR 2,300 Crores.

o   Fresh equity investment of INR 3,523 Crores for a 20% stake in the Pharma business by The Carlyle Group. This PE deal, one of the largest in the Indian Pharma sector, valued our Pharma business at an EV of USD 2.7 – 3.1 billion.

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