Piramal Finance Ltd has secured approval to raise Rs 2,000 crore through Non-Convertible Debentures (NCDs) on a private placement basis. The issuance features a coupon rate of 8.62% with a tenure of 3 years and 45 days. This strategic capital raise is intended to support the company’s ongoing financing operations, with the debentures set to be listed on both BSE and NSE.
Piramal Finance Greenlights Rs 2,000 Crore NCD Issuance
Base Issue Size: Rs 500 Crore
Total Potential Issue Size: Rs 2,000 Crore
Reader Takeaway: This debt issuance strengthens liquidity via fixed-income instruments while locking in a medium-term capital structure at 8.62%.
What just happened
Piramal Finance Ltd has received board approval to issue Secured, Rated, Listed, Redeemable Non-Convertible Debentures (NCDs) via a private placement. The base size is Rs 500 crore, with a green shoe option allowing for an additional Rs 1,500 crore, bringing the total potential raise to Rs 2,000 crore.
Key Issue Terms
The debentures carry a coupon rate of 8.62% per annum, payable annually. The investment instrument has a tenure of 3 years and 45 days, with an allotment date of October 8, 2026, and a final maturity date of November 22, 2029. Each debenture carries a face value of Rs 1,00,000.
Security and Compliance
To protect investors, the debentures are backed by a first-ranking pari-passu charge on the company’s hypothecated assets. Piramal Finance is mandated to maintain a security cover ratio of at least 1x throughout the duration of the debentures. If the company fails to make timely interest or principal payments, a default interest penalty of 2% per annum will apply over the standard coupon rate until the default is rectified.
What changes now
The debentures are slated for listing on the Wholesale Debt Market (WDM) segments of both the BSE and the NSE. The NSE has been designated as the lead exchange for this listing, which is expected to occur within three working days of the issue closure.