October 22, 2023
admin
Piramal Enterprises NCD Tranche I October 2023 Details & Guidance
NCD Issue Opens on 19 October 2023
NCD Issue Closes on 02 November 2023
# NCD Guidance is given at the bottom of the post
About the Company:
The Company presently provides (i) wholesale funding solutions to real estate developers, corporates and SMEs across sectors; and (ii) retail funding opportunities including housing finance, loan against property, secured small and medium enterprises (“MSMEs”) loans, other secured loans and unsecured loans (including microfinance loans) to individuals and MSMEs. In addition to its wholesale and retail lending business, we also have a fund management business which provides customised funding solutions through Piramal Credit Fund. The fund includes capital commitment from various investors including CDPQ.
It also has a distressed and special situations investment platform, India Resurgence Fund (“IRF”) with Bain Capital Credit, which invests capital directly into businesses and acquires debt of distressed businesses. It also has presence in the life insurance sector, as it has a 50% shareholding in Pramerica Life Insurance (a joint venture with Prudential International Insurance Holdings), pursuant to its acquisition of Dewan Housing Finance Limited (“DHFL”).
Its retail lending business primarily focusses on self-employed individuals and MSMEs. It offers four types of retail loan products, which are (i) home loans; (ii) secured MSME loans; (iii) other secured loans; and (iv) unsecured loans (including microfinance loans). Its wholesale lending business focuses on companies engaged in the real estate sector and certain other sectors such as NBFC/NBFC-FI, healthcare, infrastructure, renewable energy, hospitality, logistics, and auto components. For its real estate customers, it provides financing solutions such as early stage financing, structured debt, senior/ junior secured debt, construction finance and flexible lease rental discounting. Other than the real estate sector, its wholesale lending business primarily focuses on cash backed, small ticket size construction finance clients as well as corporate and mid-market lending (“CMML”). For its wholesale lending business, it has introduced a new strategy ‘Wholesale 2.0’ recently, for loans sanctioned under corporate mid-market loans and real estate financing (“Wholesale 2.0”). It has recently also commenced Small Developer Finance (“SDF”) for lending to mid-market and affordable housing projects in low penetrated markets of Tier 1 outskirts and Tier 2/3 cities.
Get more details about the company @ http://www.piramal.com/
NCD Promoter: Ajay G. Piramal.
NCD Rating
The company has received a rating of [ICRA]AA (Stable) by ICRA Limited and CARE AA (Stable) by CARE Ratings Limited for the NCDs proposed to be issued pursuant to this Issue.
| Piramal Enterprises NCD Tranche I October 2023 Detail | |
| Issue Open | October 19, 2023 – November 2, 2023 |
| Security Name | Piramal Enterprises Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 1,000.00 Crores |
| Issue Size (Shelf) | Rs 3,000.00 Crores |
| Issue Price | Rs 1000 per NCD |
| Face Value | Rs 1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE, NSE |
| Credit Rating | [ICRA]AA (Stable) by ICRA Limited and CARE AA (Stable) by CARE Ratings Limited |
| Tenor | 2 , 3, 5 and 10 years |
| Series | Series I to IV |
| Payment Frequency | Anually |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Idbi Trusteeship Services Ltd. |
| NCD Allocation Ratio | |
| Category | NCD’s Allocated |
| Institutional | 20% |
| Non-Institutional | 30% |
| HNI | 30% |
| Retail | 30% |
| Total | 100% |
| NCD’s Offered by Category | |
| Category | NCD’s Reserved |
| Institutional | 4,00,000 |
| Non-Institutional | 4,00,000 |
| Retail | 6,00,000 |
| HNI | 6,00,000 |
| Total NCD’s | 20,00,000 |
| Piramal Enterprises Limited NCD Coupon Rates | ||||
| Series 1 | Series 2 | Series 3 | Series 4 | |
| Frequency of Interest Payment | Annual | Annual | Annual | Annual |
| Nature | Secured | Secured | Secured | Secured |
| Tenor | 2 Years | 3 Years | 5 Years | 10 Years |
| Coupon (% per Annum) | 9.00% | 9.05% | 9.20% | 9.35% |
| Effective Yield (% per Annum) | 9.00% | 9.05% | 9.19% | 9.34% |
| Amount on Maturity (In Rs.) | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 |
Piramal Enterprises NCD Tranche I October 2023 Details Guidance
Objects of the Issue
The company intends to utilize the net proceeds from the issue towards the funding of the following objects:
For the purpose of onward lending, financing, and for repayment/prepayment of interest and principal of existing borrowings of the Company – 75% of the amount raised and allotted in this Tranche I Issue.
For General Corporate Purposes – 25% of the amount raised and allotted in this Tranche I Issue
.
| Company Financials | ||
| Piramal Enterprises Limited Financial Information (Restated Consolidated) | ||
| Period Ended | 30-Mar-23 | 31-Mar-22 |
| Assets | 74,436.54 | 84,300.28 |
| Revenue | 9,086.74 | 7,910.89 |
| Profit After Tax | 9,968.58 | 1,998.77 |
| Net Worth | 31,059.00 | 30,120.00 |
| Reserves and Surplus | ||
| Total Borrowing | ||
| Amount in Rs Crore | ||
Address of the Company
Piramal Enterprises Limited
Piramal Ananta, Agastya Corporate Park
Opposite Fire Brigade, Kamani Junction, LBS Marg,
Kurla (West), Mumbai 400 070, Maharashtra
NCD Lead Managers
A.K. Capital Services Ltd
Jm Financial ltd
Nuvama Wealth Management Ltd
Trust Investment Advisors Pvt ltd
NCD Registrar
Link Intime India Private Ltd
Piramal Enterprises NCD Tranche I October 2023
Red Herring Prospectus
Analysis & Guidance by Paresh Gordhandas, CA, Research Analyst.
1. Very sound company with strong balancesheet and profitability.
2. Profits show declining trend during last 3 years.
3. NCD has been rated ‘Icra AA (Stable)
4. Reasonably high coupon rates.
investment is recommended.
| Piramal Enterprises NCD Tranche I October 2023 | |
| Subscription Status | |
| On 20.10.2023 | @ 5.00 pm |
| Category | Subscription |
| Institutional | 0.00 T |
| Non-Institutional | 1.80 T |
| HNI | 1.74 T |
| Retail | 2.63 T |
| Total | 0.00 T |
