Piramal Capital & Housing Finance raises Rs 4,050 crore through NCDs

Piramal Capital & Housing Finance,  a wholly-owned subsidiary of Piramal Enterprises Limited (PEL), on Monday said it raised Rs 4,050 crore through issuance of long-term, five-year non-convertible debentures (NCDs) in two tranches.

The first tranche of the NCD issue amounting to Rs 2,000 crore opened on March 10, 2021 with a pay-in on March 12, 2021. The second tranche of the remaining Rs 2,050 crore opened on March 18, 2021 with a pay-in on March 19, 2021. Rating firm CARE Ratings has assigned an ‘AA’ rating for both the issuances, it said

Rajesh Laddha, executive director, Piramal Enterprises. said, “Since the beginning of FY20, we have significantly transformed the liabilities profile towards more stable, long-term sources of funds. The company has raised over Rs 50,000 crore since Apr-2019, through multiple long-term borrowings and equity transactions, thereby materially strengthening the balance sheet. With net debt-to-equity of less than 1x times, there is adequate growth capital available for both our business for the coming few years. The five-year NCD issuances of Rs 4,050 crore re-affirm the significant improvement of our liabilities side and strength of our balance sheet. We are now well positioned to tap growth opportunities across both our Financial Services and Pharma businesses.”

The company has raised over Rs 50,000 crore since Apr-2019, through several equity transactions leading to inflows of over Rs 18,000 crore, which include preferential allotment to CDPQ of Rs 1,750 crore, rights issue of Rs 3,650 crore, issue, sale of DRG for a gross consideration of Rs 6,950 crore, in the midst of Covid-19 crisis in the US.

It sold the Shriram Transport stake for Rs 2,300 crore and sold 20 per cent stake in the pharma business to The Carlyle for Rs 3523 crore. This PE deal, one of the largest in the Indian pharma sector, valued its pharma business at an EV of $2.7 - 3.1 billion.