Piramal Enterprises rights issue over-subscribed around 1.14 times

Piramal Enterprises on Wednesday said its nearly Rs 3,650 crore rights issue that closed on Tuesday was over-subscribed around 1.14 times.

"The issue saw participation from most of its existing large institutional investors, as well as retail investors," Piramal Enterprises said in a statement.

The issue has been over-subscribed around 1.14 times. The approximately Rs 3,650 crore rights issue offered an opportunity to all existing shareholders to participate in the capital raise, it added.

"We are delighted to receive such a tremendous response from our existing shareholders towards the rights issue especially in this volatile market environment," Piramal Enterprises Chairman Ajay Piramal said.

The enthusiastic response by both retail and institutional shareholders is an affirmation of their confidence in the company's fundamentals, balance sheet and growth prospects, he added.

Through the rights issue, the preferential allotment to CDPQ, the stake sale in Shriram Transport and the recent sale of Decision Resources Group, the company is far exceeding its commitment to bring in Rs 8,000-10,000 crore of equity in 2019-20, Piramal said.

"With these transactions, the company is raising funds aggregating up to around Rs 14,500 crore, which will further strengthen our balance sheet and allow us to target both organic as well as inorganic growth opportunities that the environment is offering," he added.