Piramal Enterprises raises Rs 1,750 crore from CDPQ

Piramal Enterprises said on Thursday it had raised Rs. 1,750 crore through preferential allotment of compulsory convertible debentures (CCD) to Canadian investor Caisse de dépôt et placement du Québec (CDPQ).

Piramal Enterprises (PEL) has allotted over 1.15 lakh CCDs of face value of Rs. 1.51 lakh per CCD at par, bearing a coupon of 9.28% per annum, to the investor. The compulsory conversion of CCDs into equity shares will take place within 18 months from date of allotment.

Piramal Enterprises chairman Ajay Piramal said the fund infusion would strengthen the firm’s balance sheet and also enable it to tap both organic and inorganic growth opportunities that continue to emerge in the current market dynamics across the sectors and the markets which it operates in.

PEL said that CDPQ, a long-standing existing investor with PEL, had also participated as the anchor investor during PEL’s previous capital issuance, investing $175 million of the total issue size of $750 million. In addition, CDPQ’s real estate subsidiary, Ivanhoé Cambridge, had committed $250 million towards a co-investment platform with PEL to provide long-term equity to blue-chip residential developers, it said.

PEL is also raising Rs. 3,650 crore through rights issue for which the record date has been set at December 31. PEL has set the rights entitlement ratio as 11 equity shares for every 83 fully paid-up equity shares held as on the record date by the eligible equity shareholders of the company and the holders of CCDs who may participate in the issue.

“This issuance of Rs. 3,650 crore gives an opportunity to existing shareholders to participate in the capital raise at an attractive price of Rs. 1,300 per share. The promoters are committed to the success of the rights issue and are underwriting 90% of the issuance,” PEL said.
Shares of PEL closed Thursday’s trading session down 0.59% at Rs. 1,629 on the BSE.

Source: Financial Express