Piramal Enterprises raises ₹1,750 crore from CDPQ via preferential allotment1 min read . Updated: 19 Dec 2019, 07:37 PM IST
- The compulsory conversion of CCDs into equity shares will take place within 18 months from the date of allotment
- Pirmal will also soon launch a rights issue to raise around ₹3,650 crore
Mumbai: Piramal Enterprises Ltd on Thursday said that it has raised Rs1,750 crore through a preferential allotment of compulsory convertible debentures (CCD) to Canadian pension fund manager Caisse de dépôt et placement du Québec (CDPQ), the company said in a statement.
The compulsory conversion of CCDs into equity shares will take place within 18 months from the date of allotment.
CDPQ, an existing investor in Piramal Enterprises, had also participated as the anchor investor during the company’s previous capital issuance, investing $175 million out of the total issue size of $750 million. In addition, CDPQ’s real estate subsidiary, Ivanhoé Cambridge, has committed $250 million towards a co-investment platform with Piramal to provide long-term equity to residential developers.
“This infusion of funds will strengthen our balance sheet and also enable us to tap both organic and inorganic growth opportunities that continue to emerge in the current market dynamics across the sectors and the markets that we operate in," said Ajay Piramal, chairman, Piramal Enterprises Ltd.
Pirmal will also soon launch a rights issue to raise around ₹3,650 crore.
The company has set a record date of 31 December for the rights issue. Shares will be sold to existing shareholders at ₹1,300 apiece in the rights issue.
“The promoters are committed to the success of the Rights Issue and are underwriting 90% of the issuance," the statement said.