Piramal Enterprises to raise up to ₹ 1000 cr via NCDs

Piramal Enterprises Ltd (PEL) is planning to raise up to ₹ 1,000 crore via two series of non-convertible debentures (NCDs) of up to two years tenor.

The meeting of the company's administrative committee of the board of directors on Wednesday approved the issue of secured NCDs on private placement basis. These NCDs are proposed to be listed on Wholesale Debt Market segment of NSE, the company said in a stock exchange notice.

The company is proposing to raise ₹ 100 crore via series 1 NCD (security name: 0% Piramal Enterprises Ltd 2019). This series has a maturity of one year.

PEL is planning to raise ₹ 400 crore via series 2 (security name: 0% Piramal Enterprises Ltd 2020) with green shoe option of ₹ 500 crore, with the total value in this series not exceeding ₹ 900 crore. This series has a maturity of two years.

Zero coupon debentures are issued at a discount to their face value, at which it will be redeemed. There are no intermittent payments of interest

The company said the redemption premium for the NCDs will be calculated at the rate of the yield, in accordance with the Debenture Trust.

For the NCDs, PEL said the security is in the form of " A first ranking pledge over some of the securities held by the Company and its affiliates. A first ranking charge by way of hypothecation over the receivables from such securities held by the Company and its affiliates."

Piramal Enterprises is the flagship company of the Piramal Group. It has businesses in the Pharma, Information Management, and Financial Services space.

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