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Piramal Enterprises plans Rs 7k cr fundraising via debentures, rights issue

Company plans to raise Rs 2,000 cr through a rights issue with an issue price of Rs 2,380 per equity share

Aneesh Phadnis  |  Mumbai 

Ajay Piramal, Piramal Housing Finance
Ajay Piramal, chairman, Piramal Enterprises

Ajay Piramal-led plans to raise Rs 7,000 crore with a mix of and compulsorily convertible through an institutional placement to fund the company's growth plans. The plan was approved by the company's board at its meeting today and comes in the backdrop of the group's foray into the housing finance business and expansion of its healthcare business. The company plans to raise Rs 2,000 crore through a with an issue price of Rs 2,380 per equity share. The issue price is 13% discount to stock's Thursday's closing price of Rs 2,740.80. The promoters will be participating in the rights issue, the company said in its stock exchange notification.

A committee will decide the terms and conditions and the timing of the Additionally, the board also approved raising of Rs 5,000 crore through the issue of convertible from institutional investors. These will carry an interest rate of 7.8%. The convertible will mature 18 months after allotment date and that shareholders will have an option to convert them into equity shares any time before maturity. The company's board and shareholders had earlier approved raising of funds upto Rs 5,000 crore and today board approved the issue of for the same. The board also decided to carry out a “to enable shareholders of the company to participate in the proposed fundraising”.

First Published: Thu, October 12 2017. 23:05 IST