Piramal Enterprises NCD opens for subscription from 19 October 2023. The company aims for a base issue size of ₹1000 Crores.
About the company
Incorporated in 1947, Piramal Enterprises is the flagship company of the Piramal Group, one of the leading conglomerates in India. The company presently provides (i) wholesale funding solutions to real estate developers, corporates, and SMEs across sectors; and (ii) retail funding opportunities including housing finance, loan against property, secured small and medium enterprises (‘MSMEs’) loans, other secured loans and unsecured loans (including microfinance loans) to individuals and MSMEs.
Piramal Enterprises has a rapidly growing network across India. The acquisition of Dewan Housing Finance Limited (DHFL) has added a pan-India distribution network of a large number of branches to its existing branch network. As of 30 June 2023, the company has 424 conventional branches, including 136 microfinance branches across 25 states and union territories across India.
The AUM of retail lending business witnessed a growth of 49.15% from INR 21,552.28 crores as of FY 2022 to INR 32,144.23 crores as of FY 2023. The contribution of retail loans to the total AUM has been increasing, and as of 31 March 2023, the ratio of retail loans to wholesale loans in terms of contribution to the total AUM was 50:50, as compared to 33:67 as of 31 March 2022.
Objectives of the Issue
- For the purpose of onward lending, financing, and for repayment/prepayment of interest and principal of existing borrowings of the Company – 75% of the amount raised and allotted in this Tranche I Issue.
- For General Corporate Purposes – 25% of the amount raised and allotted in this Tranche I Issue.
Piramal Enterprises 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) | ₹1,000 Crores |
| Issue Size (Shelf) | ₹3,000 Crores |
| Issue Price | ₹1000 per NCD |
| Face Value | ₹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 Ltd. |
Piramal Enterprises NCD Options and Coupon Rates
| Option | Tenure | Interest Payment | Coupon Rate | Effective Yield | Maturity Amount |
| Series 1 | 2 Years | Annual | 9.00% | 9.00% | ₹1,000 |
| Series 2 | 3 Years | Annual | 9.05% | 9.05% | ₹1,000 |
| Series 3 | 5 Years | Annual | 9.20% | 9.19% | ₹1,000 |
| Series 4 | 10 Years | Annual | 9.35% | 9.34% | ₹1,000 |
Piramal Enterprises NCD Rating
The company has received a rating of [ICRA]AA (Stable) by ICRA Limited and CARE AA (Stable) by CARE Ratings Limited for the NCDs proposed to be issued pursuant to this Issue.
Piramal Enterprises Financials
| Period Ended | 30 Mar 2023 | 31 Mar 2022 |
| Assets | 74,436.54 | 84,300.28 |
| Revenue | 9,086.74 | 7,910.89 |
| Profit After Tax | 9,968.58 | 1,998.77 |
| Net Worth | 31,059.00 | 30,120.00 |
Piramal Enterprises NCD Allocation Ratio
NCDs Offered by Category
| Category | NCD’s Reserved |
|---|---|
| Institutional | 400,000 |
| Non-Institutional | 400,000 |
| HNI | 600,000 |
| Retail | 600,000 |
| Total NCD’s | 2,000,000 |
Company Promoters
- Ajay G. Piramal
Piramal Enterprises NCD Lead Manager
- A.K. Capital Services Limited
- JM Financial Limited
- Nuvama Wealth Management Limited
- Trust Investment Advisors Private Limited
Piramal Enterprises Registrar
LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: +918108114949
Email: pel.ncd@linkintime.co.in
Website: www.linkintime.co.in
Company Contact Details
PIRAMAL ENTERPRISES LIMITED
Piramal Ananta, Agastya Corporate Park,
Opposite Fire Brigade, Kamani Junction,
LBS Marg, Kurla (West), Mumbai 400 070, Maharashtra
Phone: +91 22 3802 3000/4000
Email: treasury.pchfl@piramal.com; bipin.singh@piramal.com
Website: www.piramal.com
Final Thoughts
Non-convertible debentures (NCDs) are a better investment option for those who are looking for a diversified portfolio. investing in Piramal Enterprises NCD is purely your personal choice. make a good study and analysis before you make the investment.
Happy Investing
