Piramal Enterprises slumps 17% post announcement of capital-raising plan

According to the proposal, the Rights Issue will be completed by February 2020, while the CCD will be issued in November 2019

Piramal Enterprises tanked 17.3 per cent to Rs 1,425.2 per share in the afternoon deals on the BSE on Friday after the company, at its board meeting, approved preferential Compulsory Convertible Debentures (CCD) allotment to Canadian institutional investor Caisse de dépôt et placement du Québec (CDPQ) for a price consideration of Rs 1,750 crore.

"The Board has approved fresh capital raise of Rs 5,400 crores through a Rights Issue and preferential allotment of CCDs. The Promoters will participate in and are committed to the success of the Rights Issue," it said in a BSE filing. READ FILING