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Piramal Enterprises approves raising of Rs 5,400 crore capital

ANI 

The board of Piramal Enterprises on Friday approved fresh capital raising of Rs 5,400 crore through a rights issue and preferential allotment of compulsory convertible debentures (CCDs).

The rights issue of Rs 3,650 crore at Rs 1,300 per share is intended to give an opportunity to all its existing shareholders to participate in the capital raise at an attractive price. The promoters will participate in and are committed to the success of the rights issue, the company said in a statement.

In addition, the company plans to raise Rs 1,750 crore through the preferential allotment of CCDs (at a conversion price of Rs 1,510 per share) to Canadian institutional investor Caisse de depot et placement du Quebec (CDPQ).

The preferential allotment will take place by November end and the rights issue is expected to be completed by the end of February 2020.

"This fresh equity infusion from CDPQ, an existing global, marquee, long-term investor in PEL, especially in the current market scenario is a validation of the robustness of the company's model and long-term growth trajectory," said Chairman Ajay Piramal.

"We also want to offer our existing investors, to get an equal opportunity to participate in this capital raise and benefit from the attractive price of the right issue. As promoter family, we remain fully committed and would like to further increase our investment in the company."

Piramal said these funds will further strengthen the company's balance sheet, fortify and insulate it against any external shocks to the financial system in future as well as enable it to tap organic and inorganic opportunities arising out of market consolidation across financial services, pharmaceuticals and information management businesses.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, October 25 2019. 16:03 IST
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