PEL raises ₹1,750 cr. from Canada’s CDPQ

CCDs to be converted into shares in 18 months from allotment

Piramal Enterprises Ltd. (PEL) has announced the completion of ₹1,750 crore fund raise from Canadian institutional investor, Caisse de dépôt et placement du Québec (CDPQ) through preferential allotment of compulsory convertible debentures (CCDs).

The conversion of CCDs into equity shares will take place within 18 months from the date of allotment.

CDPQ, a long-standing existing investor with PEL, had also participated as the anchor investor during PEL’s previous capital issuance, investing $175 million out of the total issue size of $750 million.

In addition, CDPQ’s real estate subsidiary, Ivanhoé Cambridge, had committed $250 million towards a co-investment platform with PEL to provide long-term equity to blue chip residential developers.

Ajay Piramal, chairman, PEL said, “CDPQ’s, the marquee global investor, long-standing partnership with Piramal Group and its further investment in the company reaffirms the strength of our business model and long-term growth potential.”

“This infusion of funds will strengthen our balance sheet and also enable us to tap both organic and inorganic growth opportunities that continue to emerge in the current market dynamics across the sectors and the markets that we operate in,” he said.

PEL has set the record date at December 31, 2019, for the rights issue. This issuance of ₹3,650 crore gives an opportunity to existing shareholders to participate in the capital raise at a price of ₹1,300 per share.

The promoters are underwriting 90% of the issuance.

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Printable version | Feb 18, 2020 9:06:43 PM |

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