Piramal Enterprises limited has informed the Exchange regarding issuance of Secured, rated, listed, Redeemable, Non - Convertible debentures in two separate series on private placement ....
Awaiting price reaction for this filing.
Piramal Enterprises has approved the issuance of secured, rated, listed, redeemable non-convertible debentures (NCDs) in two series on a private placement basis via the EBP route. Series 1 has a base size of Rs. 75 crore with a green-shoe option of Rs. 375 crore (aggregating up to Rs. 450 crore), a tenure of about 9.7 years maturing on 23 Feb 2035, and carries a coupon of 9.10% p.a. Series 2 has a base size of Rs. 50 crore with a green-shoe option of Rs. 100 crore (aggregating up to Rs. 150 crore), a tenure of about 2.2 years maturing on 6 Aug 2027, and carries a coupon of 9.12% p.a. The total potential issue size is up to Rs. 600 crore, each debenture having a face value of Rs. 1 lakh. The NCDs will be secured by a first-ranking pari-passu charge on the company's hypothecated assets with a minimum security cover of 1x and listed on the WDM segment of BSE/NSE.
This is a debt-raising exercise by Piramal Enterprises to raise up to Rs. 600 crore at market competitive rates (around 9.1%), which adds to the company's borrowings but is secured against existing assets. For equity shareholders, the dilution risk is nil as these are NCDs, though overall leverage rises marginally and additional debt-servicing obligations are introduced.