Piramal Enterprises NCD opens on October 19; it offers yields up to 9.34%

Piramal Enterprises Limited, a non-deposit taking NBFC specialising in both wholesale and retail lending, is set to launch a public issue of secured non-convertible debentures (NCDs) with a face value of Rs 1,000 each. The base issue size stands at Rs 200 crore, accompanied by a green shoe option of up to Rs 800 crore, totalling up to Rs 1,000 crore (referred to as the “Tranche I Issue”).

The Tranche I Issue is scheduled to commence on Thursday, October 19, and is slated to conclude on Thursday, November 2, with the possibility of early closure or extension in accordance with the Securities and Exchange Board of India Issue and Listing of (Non-Convertible Securities) Regulations 2021. The proposed listing of the NCDs will take place on both BSE and NSE, with BSE designated as the primary Stock Exchange for this issue.

The NCDs have received credit ratings of [ICRA] AA (Stable) by ICRA Limited and CARE AA (Stable) by CARE Ratings Limited.

For prospective investors, the minimum application size is Rs 10,000 (equivalent to 10 NCDs), with subsequent investments allowed in multiples of Rs 1,000 (equivalent to 1 NCD). The issue offers NCDs with tenure options of 2 years, 3 years, 5 years, and 10 years, each with annual coupon payments, distributed across series I, II, III, and IV, respectively. The effective yield for NCD holders in various categories ranges from 9 per cent to 9.34 per cent per annum.

Out of the net proceeds generated from the Tranche I Issue, a minimum of 75 per cent will be allocated for the purpose of onward lending, financing, and repayment/prepayment of the Company's existing borrowings, while a maximum of up to 25 per cent will be earmarked for general corporate purposes.

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The terms of each series of Secured NCDs, offered under Tranche I Issue are set out below:

A. K. Capital Services Limited, JM Financial Limited, Nuvama Wealth Management Limited , and Trust Investment Advisors Private Limited are the lead managers to the issue. IDBI Trusteeship Services Limited is the Debenture Trustee to the Issue and Link Intime India Private Limited is the registrar to the issue.

Piramal Enterprises Limited is the flagship company of the Piramal Group, one of the leading conglomerates in India. The Company is a non-deposit taking, RBI registered systemically important NBFC, engaged in providing wholesale and retail lending. Its retail lending business is primarily conducted through its wholly owned subsidiary, Piramal Capital and Housing Finance Company Limited, a housing finance company registered with the National Housing Bank.