NEW DELHI :
Piramal Enterprises Ltd has raised ₹2,590 crore by issuing debt securities to San Francisco-based investment firm Farallon Capital, said a person aware of the development.
“The money was raised through three-year NCDs (non-convertible debentures) at a rate of 9%," the person cited above said, requesting anonymity. The funds will be used to repay existing loans of the group, as well as for other purposes, he added.
The fundraise was approved by the board of Piramal Enterprises on Thursday evening, as per a regulatory filing.
Piramal Enterprises did not respond to emailed queries on details of the deal. A spokesperson for Farallon could not be immediately reached for a comment.
Farallon is a multi-asset investment firm with assets of $29 billion under management. It is an active investor in India and had recently invested $49 million in debt instruments issued by Emami group firms.
The Ajay Piramal-controlled Piramal group has taken several steps in the past six months to manage its liquidity, focussing mostly on raising equity capital.
In January, the group sold its healthcare insights and analytics business to NYSE-listed Clarivate Analytics Plc. for $950 million. It comprised $900 million on closing of the deal, and $50 million to be received at the end of 12 months thereon.
Piramal Enterprises also raised ₹3,630 crore through a rights issue in January. The group is also in advanced talks to sell a 20% stake in its pharma business to private equity firm The Carlyle Group, which could fetch ₹3,000-3,500 crore, Mint reported on 25 June.
“The management has taken steps to raise equitym as well as long-term borrowings, thereby resulting in overall consolidated debt levels reducing by an estimated 29%, compared to debt levels in fiscal 2019. Nevertheless, overall repayment obligations still are considerable in fiscal 2021 at an overall level," said rating agency Crisil in a note on 29 April.
“These obligations are expected to be met by existing consolidated cash surpluses (estimated at over ₹2,800 crore on 31 March), cash generation from operations, available consolidated unutilized bank limits of around ₹4,300 crore, long-term borrowings and asset inflows from monetisation of Shriram group investments and part stake sale in the pharma business," it added.