Piramal Enterprises Ltd is planning to raise Rs 2,750 crore by issuing bonds on a private placement basis.
In a regulatory filing to the stock exchanges on Wednesday, the diversified firm said a meeting of the administrative committee of its board of directors will be held on December 28 to consider and approve the issue of secured non-convertible debentures (NCDs) on private placement basis amounting up to Rs 2,750 crore.
The company added that the money can be raised in one or more tranches from time to time.
The fresh round of fund raising comes after it completed the mobilisation of Rs 1,750 crore through preferential allotment of compulsory convertible debentures (CCDs) to Canadian institutional investor Caisse de dépôt et placement du Québec (CDPQ).
The compulsory conversion of CCDs into equity shares will take place within 18 months from the date of allotment.
The company had said this infusion of funds will strengthen its balance sheet and also enable it to tap both organic and inorganic growth opportunities. CDPQ, a long-standing existing investor with Piramal, had also participated as an anchor investor in an earlier capital issuance by investing $175 million out of the total issue size of $750 million.
Piramal Enterprises is also present in financial services through wholly owned subsidiary Piramal Capital & Housing Finance and registered as an housing finance company (HFC).
According to the RBI’s report, during 2018-19, credit flow from HFCs, systemically important non-deposit taking (NBFC-ND-SI) and deposit taking NBFCs (NBFC-D) declined. It said that HFCs witnessed deceleration in credit growth and muted profitability as market confidence in the sector waned.