Less than five months after putting in Rs 500 crore in two non-banking financial companies (NBFCs), Altico Capital India Ltd and IndoStar Capital Finance Ltd, Flipkart co-founder Sachin Bansal has reportedly subscribed to non-convertible debentures issued by Piramal Enterprises (PEL) worth Rs 200 crore. Having raked in over $1 billion by selling his 5.5 per cent stake in the etailer to Walmart last year, he has been making some big investment moves in recent times.
"The money will be used for the financial services business," a source in the know told Mint. The NCDs that Bansal has subscribed carry an interest coupon of around 9.5 per cent and a repayment period of two years.
On Friday, billionaire Ajay Piramal-controlled PEL informed the exchanges that the Administrative Committee of the Board of Directors had approved the allotment of 15,000 secured, rated, unlisted redeemable NCDs, each having a face value of Rs 10 lakh, on a private placement basis. The company has a presence in pharma, financial services and healthcare information management and generates close to 46 per cent of its revenues from the international markets. Between September 2018 and March 2019, Piramal Enterprises raised Rs 16,500 crore through NCDs and bank loans.
The buzz last month was that Bansal was ready to back another NBFC, Northern Arc Capital Ltd, by investing Rs 200 crore in its debt papers. Including the latest investment in PEL, he has so far committed Rs 900 crore in debt investments of corporate and lending institutions. While his new holding company BACQ initially focussed on tech startups, including Ola, Bansal is now diversifying into the BFSI (banking, financial services and insurance) space. The daily added that he may allocate hundreds of crores into venture debt deals.
In April, PEL reported an 88 per cent plunge in consolidated net profit to Rs 456.24 crore for the fourth quarter ended March 31, 2019. In the year-ago period, the company had a net profit of Rs 3,943.98 crore on the back of deferred tax, according to regulatory filings.
With PTI inputs