Piramal Enterprises, the largest company of Piramal Group, said on Monday that it plans to raise Rs 2,500 crore by issuing non-convertible debentures (NCDs) on private placement basis.
The administrative committee of the board of directors of the company has approved allotment of 25000 secured redeemable NCDs having face value of Rs 10 lakh each, aggregating to Rs 2,500 crore on private placement basis, Piramal Enterprises said in a filing to the Bombay Stock Exchange.
These NCDs are proposed to be listed on wholesale debt market segment of NSE, the company said.
Global rating agency, ICRA has assigned long-term rating of [ICRA]AA to the Rs 3,000 crore NCD programme of Piramal Enterprises Limited. ICRA has an outstanding rating of [ICRA]AA to the Rs 11,100 crore non-convertible debenture programme, Rs 2,495 crore term loans and Rs 300 crore long term fund based limit. The outlook on the long-term rating is Stable as ICRA believes PEL will continue to benefit from experience and strong track record of promoter in scaling up the residual business to reach desired level of profitability.
ICRA has also has outstanding ratings of [ICRA]A1+ to the Rs 2,120.0 crore short term fund based limits, Rs 300 crore short term fund based limits, Rs 9,000.0 crore Commercial Paper Programme, Rs 200 crore short term non-fund based limits and. Out of the above Rs 300 crore fund based limits are interchangeable between long term and short term though total utilisation should not exceed Rs 300 crore.
The rating agency believed that an established track record of the promoter group in building and scaling successful businesses may lead by a strong and experienced management team.
"The ratings also favourably factor in the established position and wide product portfolio of PEL in the global pharmaceutical business coupled with its geographical diversification."
Meanwhile, shares of Piramal Enterprises close trade at Rs 2,295.60 apiece, up 0.25 per cent, on the Bombay Stock Exchange on Monday.
Edited by Chitranjan Kumar