Piramal Enterprises board approves Rs 5,400 crore fundraising
The Piramal Enterprises board has approved fundraising of up to Rs 5,400 crore. This will be done in two parts. The company will raise up to Rs 1,750 crore via preferential issue of Compulsory Convertible Debentures (CCDs) to Canadian fund CDPQ. Secondly, Piramal Enterprises will issue equity shares worth Rs 3,650 crore via rights issue at Rs 1,300/share to existing shareholders. CDPQ’s stake post CCD conversion will increase to 9.51 percent from 3.68 percent.
The Piramal Enterprises board has approved fundraising of up to Rs 5,400 crore. This will be done in two parts.
Firstly, the company will raise up to Rs 1,750 crore via preferential issue of Compulsory Convertible Debentures (CCDs) to Canadian fund CDPQ.
Secondly, Piramal Enterprises will issue equity shares worth Rs 3,650 crore via rights issue at Rs 1,300/share to existing shareholders. CDPQ’s stake post CCD conversion will increase to 9.51 percent from 3.68 percent.
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Ajay Piramal sat down with CNBC-TV18's Nisha Poddar to discuss the deal contours in detail.
He said, "The preferential allotment of CCD To CDPQ will be completed in December 2019. The rights issue will be completed by February 2020."
He also added that the promoters will participate in the rights issue and also take care of any shortfall.
He further explained, “CDPQ has no option but to convert the CCD. CDPQ will infuse additional funds by subscribing to rights issue.”
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