Piramal Enterprises jumps on amending terms linked to redemption of some NCDs

Piramal Enterprises rose 3.93% to Rs 2269 at 11:32 IST on BSE after the company said its board approved amendment to the terms of issue of non-convertible debentures.

The announcement was made after market hours yesterday, 18 December 2018.

Meanwhile, the S&P BSE Sensex was up 67.63 points, or 0.19% to 36,414.71.

On the BSE, 55,000 shares were traded in the counter so far compared with average daily volumes of 32,000 shares in the past two weeks. The stock had hit a high of Rs 2310.30 and a low of Rs 2185 so far during the day. The stock hit a 52-week high of Rs 3,302.55 on 31 August 2018. The stock hit a 52-week low of Rs 1,796.75 on 26 October 2018.

Piramal Enterprises announced that its board approved allotment of 52,440 equity shares of face value of Rs 2 each at a conversion premium of Rs 2688 per share pursuant to optional conversion of 1311 compulsorily convertible debentures (CCDs) of face value of Rs 1,07,600 each aggregating to Rs 14,10,63,600. These equity shares are proposed to be listed on BSE and National Stock Exchange of India. The committee also approved payment of pro-rata interest to these CCD holders in accordance with the placement document dated 17 October 2017.

Further, the board approved amendment to the terms of NCDs issued vide information memorandum dated 15 November 2018 and 28 November 2018 by modifying rating trigger threshold from A+ to BBB+ i.e. the debenture holder(s) shall have option to call for an early redemption of NCDs in case credit rating of the issuer falls to ICRA BBB+ or below.

In a separate announcement, the company said that its board will meet on 21 December 2018 to consider and approve the issue of secured non convertible debentures (NCDs) of up to Rs 3000 crore on private placement basis.

On a consolidated basis, net profit of Piramal Enterprises rose 25.31% to Rs 481.19 crore on 23.99% rise in net sales to Rs 3144.10 crore in Q2 September 2018 over Q2 September 2017.

Piramal Enterprises (PEL) is a diversified company with presence in pharma, financial services and healthcare information management.

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