Companies

Piramal Enterprises raises Rs 1,750 crore from CDPQ through preferential allotment

Our Bureau Mumbai | Updated on December 19, 2019 Published on December 19, 2019

Piramal Enterprises Ltd on Thursday said it has raised Rs 1,750 crore from Caisse de dépôt et Placement du Québec (CDPQ) through preferential allotment.

The compulsory conversion of CCDs into equity shares will take place within 18 months from date of allotment, the company said in a statement. PEL has set the record date of December 31, 2019, for the Rights Issue.

Noting that CDPQ has a long-standing partnership with Piramal Group, Ajay Piramal, Chairman, PEL said the further investment in the company reaffirms the strength of the business model and long-term growth potential.

“This infusion of funds will strengthen our balance sheet and also enable us to tap both organic and inorganic growth opportunities that continue to emerge in the current market dynamics across the sectors and the markets that we operate in,” he said.

“This issuance of nearly 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 per cent of the issuance,”PEL further said.

Diversified conglomerate PEL had in October announced its plans to raise fresh capital ₹ 5,400 crore through a Rights Issue and preferential allotment of Compulsory Convertible Debentures (CCDs). Of this it planned to raise ₹ 1,750 crore ($ 250 million) through the preferential allotment of CCDs from Canadian institutional investor CDPQ.

It had earlier also participated as the anchor investor during PEL’s previous capital issuance and had invested $ 175 million out of the total issue size of $ 750 million. Additionally, CDPQ’s real estate subsidiary, Ivanhoé Cambridge, has committed $ 250 million towards a co-investment platform with PEL to provide long-term equity to blue-chip residential developers.

Published on December 19, 2019
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