26-Oct-2023
2 mins read
Piramal Enterprises Limited has announced a public issue of NCDs to raise capital from the debt market. The NCD subscription starts on October 19, 2023, and closes on November 2, 2023. It will have a base issue size of Rs 1000 crore.
About Piramal Enterprises Limited
The Piramal Group is a diverse business corporation that was founded in April 1947. It includes multiple smaller companies that operate in industries such as pharmaceuticals, financial services, and real estate. With offices in over 30 countries and operations in more than 100 countries, the group has established a substantial global presence. The Piramal Group employs over 10,000 individuals from various parts of the world.
Though not a bank, Piramal Enterprises Limited is a prominent financial company based in India. With over 400 branches operating across various states in the country, their services cater to both individuals and businesses. Their offerings encompass diverse financial solutions such as home loans, loans against property, and specialised lending options for small and medium-sized enterprises. Additionally, they provide microfinance loans tailored to those seeking smaller amounts of funds.
As of June 30, 2023, the company has 424 regular branches, and among them, 136 are dedicated to microfinance. These branches are spread across 25 states and union territories in India.
Financial Performance of Piramal Enterprises Limited
| Period Ended | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 74,945.24 | 81,973.32 | 93,239.03 |
| Revenue | 8,725.79 | 8,993.90 | 10,030.12 |
| Profit After Tax | 1,127.68 | 1,177.74 | 1,201.59 |
| Net Worth | 17,303.42 | 16,616.23 | 16,076.03 |
Piramal Enterprises Limited NCD Details
| Issue Open | October 19, 2023 – November 2, 2023 |
| Security Name | Piramal Enterprises Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 1000.00 Crores |
| Issue Size (Shelf) | Rs 3000.00 Crores |
| Issue Price | Rs 1000 per NCD |
| Face Value | Rs 1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE, NSE |
| Credit Rating | [ICRA]AA (Stable)” by ICRA Limited and CARE AA (Stable) by CARE Ratings Limited |
| Tenor | 2, 3, 5 and 10 years |
| Series | Series I to IV |
| Payment Frequency | Annually |
| Basis of Allotment | First Come, First Serve Basis |
| Debenture Trustee/s | Idbi Trusteeship Services Limited |
NCD Allocation Ratio of Piramal Enterprises Limited NCD
| Category | NCD’s Allocated |
| Institutional | 20% |
| Non-Institutional | 20% |
| HNI | 30% |
| Retail | 30% |
Piramal Enterprises Limited NCD Coupon Rates
| # | Frequency of Interest Payment | Nature | Tenor | Coupon (% per Annum) | Effective Yield (% per Annum) | Amount on Maturity (In Rs.) |
| Series 1 | Annual | Secured | 2 Years | 9.00% | 9.00% | Rs 1,000.00 |
| Series 2 | Annual | Secured | 3 Years | 9.05% | 9.05% | Rs 1,000.00 |
| Series 3 | Annual | Secured | 5 Years | 9.20% | 9.19% | Rs 1,000.00 |
| Series 4 | Annual | Secured | 10 Years | 9.35% | 9.34% | Rs 1,000.00 |
NCD Rating of Piramal Enterprises Limited NCD
The NCDs proposed to be issued under this issue have been rated “CRISIL AA/Stable” by CRISIL Ratings Limited and “[ICRA]AA (Stable)” by ICRA Limited.
Company Promoters of Piramal Enterprises Limited
The promoter of the company is Ajay G. Piramal.
The Objective of the Piramal Enterprises Limited NCD
The company plans to use the net proceeds from the issue for two primary purposes.
- 75% of the amount raised and allotted in this Tranche I Issue will be used for onward lending, financing and repayment/prepayment of existing borrowings.
- 25% of the amount raised and allotted in this Tranche I Issue will be utilized for general corporate purposes.
Piramal Enterprises Limited NCD Lead Manager(s)
The lead manager of the NCD is Nuvama Wealth Management Limited, A.K. Capital Services Limited, Jm Financial Limited and Trust Investment Advisors Private Limited.
How to Apply for Piramal Enterprises Limited NCD
Wait for the NCD to open for subscription, and then click on this link to apply for the Piramal Enterprises Limited NCD with Bigul click here.
How to Check the Allotment Status of Piramal Enterprises Limited NCD
The registrar for Piramal Enterprises Limited NCD is Link Intime India Private Limited. To check your allotment status, please click on this link https://linkintime.co.in/
FAQs
- What is Piramal Enterprises Limited NCD?
The NCD (Non-Convertible Debentures) is a debt instrument offered by Piramal Enterprises Limited to the public for subscription. It is a secured, redeemable debenture that carries a fixed interest rate.
- What is the primary objective of this NCD issue?
The net proceeds from the issue will be used for onward lending, financing, repayment/prepayment of existing borrowings (75%) and general corporate purposes (25%).
- What is the issue size and price of the NCD?
The base issue size is Rs 1000 crore, with a green shoe option potentially taking the total to Rs 3000 crore. Each NCD is priced at Rs 1,000.
- How long is the NCD open for subscription?
The NCD subscription starts on October 19, 2023, and closes on November 2, 2023.
- How has the NCD been rated?
The NCD has received a [ICRA]AA (Stable) by ICRA Limited and CARE AA (Stable) by CARE Ratings Limited.
- Who are the promoters behind the company?
The company is promoted by Ajay G. Piramal.
- Where will the NCD be listed for trading?
Post-issue, the NCDs will be available for trading on BSE as well as on NSE in a dematerialized format.
- Who are the lead managers for this NCD issue?
The NCD is being led by Nuvama Wealth Management Limited, A.K. Capital Services Limited, Jm Financial Limited and Trust Investment Advisors Private Limited.
- How can I apply for the Piramal Enterprises Limited NCD?
Once the NCD opens for subscription, you can apply through this link: Piramal Enterprises Limited NCD with Bigul.
- How do I check my allotment status?
The registrar for this NCD is Link Intime India Private Limited. You can check your allotment status by visiting this link.
- How many series of NCDs are available, and what are their respective tenures?
There are 12 series of NCDs available with varying tenures of 2, 3, 5 and 10 years.
- Who is overseeing the allotment process?
The allocation of NCDs is being overseen by Idbi Trusteeship Services Limited.
- What are the payout options for these NCDs?
Investors have only annual interest payout options, with varying coupon rates depending on the series.
- What happens in the case of oversubscription?
In situations of oversubscription, Piramal Enterprises will allocate the debentures to applicants on a proportional basis.