Piramal Enterprises to raise around Rs 7,000 crore

The company will infuse around Rs 1,000 crore into housing finance and around Rs 650 crore for financial services, pharma, healthcare and analytics

Ajay Piramal-led Piramal Enterprises plans to raise around Rs 7,000 crore with a mix of qualified institutional placements (QIPs) and a rights issue to fund growth plans in next few months.

“We plan to raise Rs 4,996.2 crore through QIP and Rs 2,000 crore via rights issue to fund our growth. We aim to utilise these funds for augmenting capital to grow our existing businesses,” said Ajay Piramal, Group Chairman, Piramal.

“The company will infuse around Rs 1,000 crore into housing finance and around Rs 650 crore for financial services, pharma, healthcare and analytics,” he added.

The debentures will have a face value of Rs 1,07,600 each and the board has approved conversion at Rs 2,690 per share, against the floor price of Rs 2,688.35. The debt instruments will be converted into equity shares of face value Rs 2 each, with a maturity period of 18 months, with an option to convert all or part into equities before maturity.

The issue is expected to close on October 25.