Piramal Enterprises’ NCD Tranche I Issue opened

Piramal Enterprises Limited, is a non-deposit taking, RBI registered systemically important NBFC, engaged in providing wholesale and retail lending, has filed Tranche I prospectus dated October 16, 2023 together with the Tranche I Prospectus for public issue of secured, rated, listed, redeemable, non-convertible debentures of the face value of ₹ 1,000 each. The base issue size is Rs. 200 crores with a green shoe option of up to Rs. 800 crores, aggregating up to ₹ 1,000 crores, which is within the shelf limit of  ₹ 3,000 crores.

• Public Issue of secured, rated, listed, redeemable, non-convertible debentures (NCDs) of face value of ₹ 1,000 each
• The Tranche I Issue of NCDs is for a Base Issue Size of ₹ 200 crores with a green shoe option of up to ₹ 800 crores aggregating up to ₹ 1,000 crores, (“Tranche I Issue”) which is within the shelf limit of Rs. 3,000 crores (“Shelf Limit”).

• NCDs are rated as [ICRA] AA (Stable), and CARE AA; Stable by CARE
• Coupon Rate up to 9.35% p.a ^#
• Tranche I NCD Issue opens on Thursday, October 19, 2023, and closes on Thursday, November 2, 2023** with an option of early closure or extension
• The NCDs are proposed to be listed on BSE and NSE. BSE is the Designated Stock Exchange for the Tranche I Issue
• Allotment on First come first serve basis

The Tranche I Issue opens on Thursday, October 19, 2023, and closes on Thursday, November 2, 2023 with an option of early closure or extension in compliance with Securities and Exchange Board of India Issue and listing of (Non-Convertible Securities) Regulations 2021, as amended. The NCDs are proposed to be listed on BSE and NSE, with BSE being the Designated Stock Exchange for the Issue. The minimum application size is ₹ 10,000 (i.e. 10 NCDs) and thereafter in multiples of ₹ 1,000 thereof. The issue has maturity / tenure options of 2 years, 3 years, 5 years and 10 years for NCDs with annual coupon payment being offered across series I, II, III, and IV respectively. Effective yield for NCD holders in various categories ranges from 9.00% to 9.34% per annum.

Out of the net proceeds of the Tranche I Issue, at least 75% shall be utilised for the purpose of onward lending, financing and for repayment / prepayment of interest and principal of existing borrowings of the Company and a maximum up to 25% will be utilised for general corporate purposes.

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. With an aim to segregate the businesses of the Piramal Group, the Company entered into a scheme of arrangement pursuant to which the pharma business was demerged from PEL and transferred under a separate listed entity – Piramal Pharma Limited (PPL). Further, PHL Fininvest Private Limited (PFPL), a wholly-owned subsidiary of PEL, was merged into PEL w.e.f. August 12, 2022.