Piramal Ent seeks shareholders' nod to raise Rs 1,750 crore via CCDs

Piramal Enterprises Ltd is seeking shareholders' nod to raise Rs 1,750 crore from a Canadian investor by issuing compulsorily convertible debentures (CCDs).

In a notice for an extraordinary general meeting to be held on November 25 in Mumbai, the company said it required additional funding for various purposes, including general corporate purposes, in view of its future outlook, growth targets and prospects.

On October 25, the company's board had approved raising of funds aggregating up to Rs 5,400 crore, subject to regulatory approvals. On the same day the company had also entered into a securities subscription agreement with the investor, Caisse de depot et placement du Quebec for raising Rs 1,750 crore.

As part of the agreement, Piramal Enterprises will issue and allot 1,15,894 CCDs at a face value of Rs 1.51 lakh.

"The CCDs shall be listed on the Stock Exchanges. The term of each CCD shall be 18 months from the date of allotment, unless converted earlier by the holder of the CCD," Piramal Enterprises said in the notice.

Shareholding of Caisse de depot et placement du Quebec in Piramal Enterprises after the issue will increase to 8.99 per cent from 3.68 per cent earlier, it added.