MUMBAI: Piramal Capital & Housing Finance Limited (PCHFL), a wholly-owned subsidiary of Piramal Enterprises Limited (PEL or the Company), has raised INR 4,050 Crores through the issuance of long-term, five-year Non-Convertible Debentures (NCDs) in two tranches. The first tranche of the NCD issue amounting to INR 2,000 Crores opened on March 10, 2021, with a pay-in on March 12, 2021. The second tranche of the remaining INR 2,050 Crores opened on March 18, 2021, with a pay-in on March 19, 2021. Leading rating agency, CARE Ratings has assigned an ‘AA’ rating for both the issuances.
Mr. Rajesh Laddha, Executive Director, Piramal Enterprises Ltd. said, “Since the beginning of FY 2020, we have significantly transformed the liabilities profile towards more stable, long-term sources of funds. The Company has raised over INR 50,000 Crores since Apr-2019, through multiple long-term borrowings and equity transactions, thereby materially strengthening the Balance Sheet. With a net debt-to-equity of less than 1x times, there is adequate growth capital available for both our businesses for the coming few years. The five-year NCD issuances of INR 4,050 Crores re-affirm the significant improvement of our liabilities side and the strength of our balance sheet. We are now well-positioned to tap growth opportunities across both our Financial Services and Pharma businesses.”
Since the beginning of FY2020, despite a highly volatile environment, PEL has significantly transformed its liabilities profile towards more long-term borrowings. As part of this transformation, the Company has raised over INR 50,000 Crores since Apr-2019, through:
These measures have materially improved the ALM profile of the Financial Services business with substantial positive gaps across all buckets.
In addition, these transactions have meaningfully strengthened the Balance Sheet of the Company, leading to:
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