InvestorQ : Can you throw some light on the fund raising plans of the Piramal Enterprises group?
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Can you throw some light on the fund raising plans of the Piramal Enterprises group?

Answer
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3 months ago


Piramal Enterprises Ltd or PEL has raised Rs.2590 crore via the issuance of debt securities to Farallon Capital of the US. It may be recollected that Farallon is a San Francisco based investment outfit with $29 billion in AUM. This allows PEL to raise much needed liquidity in a market that is otherwise tight and real estate funding books are under a lot of stress.

PEL raised the funds via the issue of 3-year NCDs or non-convertible debentures at a rate of return of 9%. PEL proposes to use the fund so raised via debt securities to repay existing loans of the group as well as for other purposes. Currently, the other big investment that Farallon has in India is the $49 million in the debt of Emami Group based in Kolkata.

This is an extension of the steps taken by the Piramal group in the last few months to better address its liquidity issues. It has also been aggressively focusing on raising equity capital to shore up its capital base and in order to be able to expand its book. Recently, PEL sold its healthcare insights and analytics business to Clarivate Analytics Plc for $950 million.

Earlier this year, PEL had also collected Rs.3630 crore through a rights issue of shares. PEL is also in advanced talks to sell a 20% stake in its pharma business to Carlyle Group, one of the largest PE funds in the world. This deal is also expected to raise Rs.3500 crore for PEL. The main aim is to reduce its overall debt by nearly 30% to make its solvency comfortable.