HomeHealthcare NewsCanadian fund CDPQ eyes bigger slice of Piramal Enterprises

Canadian fund CDPQ eyes bigger slice of Piramal Enterprises

Ajay Piramal’s  Piramal Enterprises may soon be getting much-needed liquidity by way of a combination of preferential allotment of shares to Canadian fund CDPQ and a rights issue, sources with direct knowledge have shared with CNBC-TV18.

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By Nisha Poddar  October 23, 2019, 5:49:08 PM IST (Updated)

Canadian fund CDPQ eyes bigger slice of Piramal Enterprises
Ajay Piramal’s  Piramal Enterprises may soon be getting much-needed liquidity by way of a combination of preferential allotment of shares to Canadian fund CDPQ and a rights issue, sources with direct knowledge have shared with CNBC-TV18.


Piramal Enterprises has informed the exchanges that on October 25 the board will consider fundraising proposal worth Rs 5,300 crore.

CDPQ which owns 2.22 percent stake in Piramal Enterprises will increase its stake by way of preferential allotment of shares and also participating in the rights issue. The Piramal board is likely to approve raising Rs 5,300 crore via a combination of issuance of shares to CDPQ and announcing a rights issue for the existing investors. 

Sources suggest that the promoter group of Piramal Enterprises is likely to participate in the rights issue to maintain its 46.10 percent stake in the company.

Piramal Enterprises has not responded to CNBC-TV18’s query. CDPQ has responded, “We never comment on market rumours or investment opportunities we might be considering or not”

Piramal Enterprises shares jumped 3 percent in trade on the back of this newsbreak. East Bridge Capital, Life Insurance Corporation of India are some of the large non-promoter stakeholders in Piramal Enterprises.

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