Piramal Capital and Housing Finance Ltd (PCHFL), a wholly owned subsidiary of Piramal Enterprises Limited (PEL), has raised ₹4,050 crore through issuance of long-term, five-year non-convertible debentures (NCDs) in two tranches.

The first tranche of the NCD issue, amounting to ₹2,000 crore, opened on March 10 with a pay-in on March 12, 2021. The second tranche of the remaining ₹2,050 crore opened on March 18 with a pay-in on March 19, 2021.

“CARE Ratings has assigned an ‘AA’ rating for both the issuances,” the company said in a statement on Monday.

DHFL deal

The fund raise comes just weeks after the Reserve Bank of India gave PCHFL the approval to acquire troubled Dewan Housing Finance Corporation Ltd (DHFL). The total consideration for DHFL was ₹34,250 crore, comprising an upfront cash component of ₹14,700 crore and a deferred component of ₹19,550 crore.

“The five-year NCD issuances of ₹4,050 crore 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,” said Rajesh Laddha, Executive Director, PEL.

The statement noted that PEL has transformed its liabilities profile towards more long-term borrowings and has raised over ₹50,000 crore since April 2019.

“It has raised over ₹32,000 crore of long-term borrowings since April 2019, while significantly reducing the Commercial Paper exposure from ₹18,017 crore in September 2018 to ₹1,050 crore as of December 2020,” it added.

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