Piramal Enterprises had in October entered into an agreement with CDPQ to raise ₹1,750 crore via issuance of 1,15,894 CCDs
The flagship listed firm of the Piramal Group of companies planned to raise ₹5,400 crore in all
NEW DELHI :
The Competition Commission of India (CCI) on Tuesday allowed Piramal Enterprises Limited to issue compulsorily convertible debentures (CCD) to Caisse de dépôt et placement du Québec. Upon conversion, the Canadian pension fund’s stake in the Ajay Piramal company will rise to 8.99% from 3.68%.
Piramal Enterprises had in October entered into an agreement with CDPQ to raise ₹1,750 crore via issuance of 1,15,894 CCDs, carrying a face value of ₹1.51 lakh each.
Each CCD will be convertible into 100 equity shares, at a conversion price of ₹1,510 per share and will have a term of 18 months from the date of allotment, unless converted earlier by CDPQ. The issuance price is at a 6.2% discount to Tuesday’s closing price of Piramal on the BSE. It ended the day’s session at ₹1,609.85, down 2.3%. Piramal’s current equity bases comprises 198.84 million shares.
Piramal would bear an annual interest rate 9.28%, calculated on the face value of the CCDs, from the date of their allotment and until the date of their conversion. The interest will be paid to CDPQ in three half-yearly instalments, the 25 October statement had said.
The flagship listed firm of the Piramal Group of companies planned to raise ₹5,400 crore in all. Of this, ₹3,650 crore is planned to be raised via a rights issue, to be completed by February 2020.
CDPQ, an institutional investor, manages and serves more than 40 depositors, which comprises public and private pension and insurance funds in Quebec, Canada.