Piramal Enterprises to raise Rs5,000 crore through QIP
Ajay Piramal-led Piramal Enterprises Ltd on Thursday announced a qualified institutional placement (QIP) to raise up to Rs5,000 crore.
A QIP is a capital-raising tool through which listed companies can sell shares, fully and partly convertible debentures, and any securities other than warrants that are convertible into stocks to a qualified institutional buyer.
The firm will issue compulsorily convertible debentures (CCD) with a face value of Rs1,07,600 each, with a maturity period of 18 months from the date of offering, the company said in a stock exchange filing. Each CCD will be convertible into 40 equity shares, it added.
The company plans to use funds for both organic and inorganic growth opportunities in financial services.
“Our company intends to deploy a portion of the net proceeds to capitalize on organic and inorganic opportunities in financial services business including corporate lending, planned retail housing finance business, and acquisition and resolution of stressed assets by participating through distressed assets platform,” Piramal said in its QIP prospectus filed with stock exchanges.
Piramal also plans to deploy some of the proceeds for expansion of any other business vertical through acquisition, mergers, joint ventures or any other strategic investment depending on the organic and inorganic growth opportunities of its business, repayment of debt and investment in subsidiaries, it added.
Piramal Enterprises has named investment banks Kotak Mahindra Capital Co. Ltd, Citigroup Global Markets India Pvt. Ltd, Morgan Stanley India Co. Pvt. Ltd, and Motilal Oswal Investment Advisors Ltd to manage the QIP offering.
The firm said that in view of further fund-raising requirements, it plans to raise up to Rs2,000 crore through a rights issue.