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Niti Shenoi made post

How is Piramal Enterprises progressing on its debt reduction plans?

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Archita Jajjoo answered.
4 weeks ago

When the previous financial year commenced in April 2019, Piramal Enterprises had set itself a target of aggressive raising capital and reducing its debt burden to lighten up the balance sheet. Towards this end, Piramal Enterprises Ltd raised a total sum of Rs.14,500 crore during FY-20 leading to a substantial reduction in the solvency risk of PEL.

The chairman of the group, Ajay Piramal, even highlighted that PEL had exceeded its fund raising target for the year despite extremely difficult market conditions. The primary idea of this aggressive fund raising was to deleverage the balance sheet to the extent possible. The equity base of the company also increased to Rs.30,500 crore during the year.

Apart from raising funds, PEL is also focusing on monetizing some of its non-core assets in the balance sheet. As part of the asset monetization plan, PEL raised Rs.3650 crore through a rights issue, Rs.6800 crore from the sale of its healthcare insights and analytics business as well as Rs.2300 crore from the sale of its 10% stake in Shriram Transport Finance.