Piramal Capital and Housing Finance Limited on Wednesday announced the issue of secured, rated, listed, redeemable, non-convertible debentures of the face value of ₹1,000 each.

“The Tranche I Issue has a base issue size of ₹200 crore with an option to retain over subscription up to ₹800 crore, aggregating up to ₹1,000 crore,” it said in a statement.

The Tranche 1 Issue opens on July 12, 2021, and closes on July 23, 2021 (with an option of early closure or extension).

Piramal ties up funds from Barclays Bank, Standard Chartered for DHFL buy

PCHFL, is a wholly-owned subsidiary of Piramal Enterprises Ltd. It is a non-deposit taking housing finance company, into wholesale and retail funding and is in the midst of acquiring Dewan Housing Finance Corporation Ltd (DHFL).

Rajesh Laddha, Executive Director and Group Chief Financial Officer, Piramal Enterprises Ltd said the funds raised will be used for retail disbursement. “The retail engine is in motion. We are getting more people and expanding branches,” he told reporters.

Despite the turmoil, DHFL buy is an opportunity for Piramal Group

Target market

Jairam Sridharan, CEO, Piramal Retail Finance said the focus of the business is on the retail segment in Tier 2 and 3 towns. This will get enhanced with the acquisition of DHFL. It is looking to focus on salaried and small business owners in these markets and offer them products such as two-wheeler and used-car financing.

Commenting on the implementation of the DHFL resolution, Laddha said that multiple things are being done. He also noted that there is no regulatory bar for Piramal Group or CoC to go ahead with resolution implementation.

“We are preparing a checklist where all issues will be sorted out. How the NCDs of ₹19,000 crore will be issued and allocated within the CoC to its members. Work is on at the CoC and Administrator’s end. There are small issues with regard to merger, getting DHFL equity and NCDs delisted,” he said.

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