Piramal Enterprises NCD Tranche I October 2023 Details & Guidance

    NCD Issue Opens on 19 October 2023piramal enterprises ncd
    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

    Piramal Enter. NCD Tranche I Oct 2023

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