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Piramal Enterprises seeks shareholders nod to raise Rs 5k cr

Press Trust of India  |  New Delhi 

Diversified business house Piramal Enterprises plans to raise up to Rs 5,000 crore to capital requirements of its three different verticals for which it is seeking approval of its shareholders.

The company is considering issuance of equity and/or convertible securities for an aggregate amount not exceeding Rs 5,000 crore or an equivalent amount in one or more foreign currencies, Piramal Enterprises said in a notice to its shareholders.

It is looking at various options, including tapping the capital market through a public issue or a private placement, besides considering (GDRs), American depository receipts (ADRs), foreign currency convertible bonds (FCCBs) for the purpose.

Explaining reasons behind the move, Piramal Enterprises said it has set targets to be achieved by the year 2020, "the achievement of which would require substantial funding".

The purpose and objects for issuance of securities is to meet capital requirements in all the three business lines of the company -- financial services, healthcare and information management, and its subsidiaries, it added.

The group has set a target to achieve market capitalisation of USD 20 billion by 2020 and clock an annual growth of 20 per cent.

The company has asked its shareholders to approve through a postal ballot the proposal to raise the funds.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, May 15 2017. 20:57 IST