Piramal Enterprises Limited on Wednesday said it plans to raise Rs 1,000 crore from maiden issuance of Non Convertible Debentures (NCDs) to fund business growth.
The tranche I comprises the base issue size of Rs 200 crore and a green-shoe option of up to Rs 800 crore, aggregating up to Rs 1,000 crore, which is within the shelf limit of Rs 3,000 crore.
The issue opens for subscription on October 19 and closes on November 2, 2023 with an option of early closure as per the Securities and Exchange Board of India norms.
According to Jairam Sridharan, MD, Piramal Capital & Housing Finance Ltd, 60 per cent of issue is reserved for high net-worth individuals and retail investors.
The secured, rated, listed, redeemable, non-convertible debentures of the face value of Rs 1,000 each is proposed to be listed on BSE and NSE, with BSE being the designated stock exchange for the issue.
The minimum application size is Rs 10,000 and thereafter in multiples of Rs 1,000.
The issue has maturity/tenure options of 2 years, 3 years, 5 years and 10 years with annual coupon payment being offered across series I, II, III, and IV respectively.
Effective yield for NCD holders in various categories ranges from 9 per cent to 9.34 per cent per annum.
Out of the net proceeds of the tranche I issue, at least 75 per cent would be utilised for the purpose of onward lending, financing and for repayment of interest and principal of existing borrowings of the company, and up to 25 per cent will be utilised for general corporate purposes including branch expansion.
Piramal Enterprises Ltd is a non-deposit taking NBFC engaged in providing wholesale and retail lending primarily through standalone operations and its wholly-owned subsidiary Piramal Capital & Housing Finance Ltd (PCHFL).
The company's consolidated operations are backed by a network of about 424 conventional branches, including 136 microfinance branches across 25 states and Union Territories.