Pi­ra­mal En­ter­prises to raise Rs5,000 crore through QIP

Mint ST - - DEALS - BY SWARAJ SINGH DHANJAL swaraj.d@livemint.com MUM­BAI

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.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.