Piramal Enterprises to raise Rs 500 crore through the issue of NCDs

Piramal Enterprises Ltd. on Tuesday announced that the company will raise up to Rs 500 crore through the issuance of non-convertible debentures (NCDs) on a private placement basis.

The company said that its board of directors in a meeting held on Tuesday has approved the issuance of secured, rated, unlisted, and redeemable NCDs.

In December 2022, as well, the company announced that the board of directors had approved the issuance of NCDs on a private placement basis to raise Rs 250 crore.

Unlike the current issuance, those NCDs were proposed to be listed on debt segments and capital market segments of the NSE and BSE, with the NSE being the designated stock exchange.

Piramal Enterprises, erstwhile Piramal Healthcare Ltd., is the flagship company of the Piramal Group, led by Ajay Piramal. It is one of India’s large diversified companies, with a presence in financial services, pharmaceuticals, and healthcare insights and analytics.

Last year, the company merged with Dewan Housing Finance Corp. Ltd. (DHFL), which was one of the largest home loan companies in the country. In September 2022, Piramal Group’s chairman Ajay Piramal told CNBC-TV18 that the company aims to split the lending business into two-thirds retail and one-third wholesale in the next five years from its current 60 percent lending to wholesale and 40 percent to retail.

Currently, Piramal Enterprises is undergoing phase III of its transformation exercise with a focus on scaling up the overall loan book, leveraging DHFL’s platform to cross-sell and increase its retail loan share.