Piramal Enterprises NCD Tranche I October 2023: Everything you need to know

19 Oct 2023 , 02:47 PM

Founded in April 1947, Piramal Group is a diversified business corporation that consists of several small subsidiaries, each operating in various industries, including pharmaceuticals, financial services, and real estate. With a presence in over 30 countries, the group has established itself globally, reaching more than 100 countries. The company employs a diverse workforce of over 10,000 employees from different nationalities.

Piramal Enterprise Limited, a part of the Piramal Group, operates as a Non-Banking Financial Company (NBFC) and boasts a network of more than 400 branches spread across different states in India. The company specializes in providing comprehensive financial solutions for both retail and wholesale lending. The company is launching a debt offer, and the subscription period for this offer will be from October 19 to November 02, 2023. Click here to apply in the Piramal Enterprise Limited NCD. 

The company is raising Rs 1000 crore from the issue at a price of Rs 1000 each. Investors need to apply for a minimum of 10 NCDs in a lot. The company has received rating of [ICRA]AA (Stable) by ICRA Limited and CARE AA (Stable) by CARE Ratings Limited.

The company will use the net proceeds from the issue for the purpose of onward lending, financing, and for repayment/prepayment of interest and principal of existing borrowings of the Company and other general corporate purposes.

Piramal Enterprises has allotted 20% each to institutional and non-institutional investors. it has also allotted 30% each to HNI and retail investors. 

These NCDs have tenures of 2 years, 3 years, 5 years, and 10 years. It offers coupon rates from 9.00% to 9.35% based on the selection of investors. The frequency of interest payments will be annually. Allotment of these NCDs will be in dematerialized mode only. Application is to be made through ASBA mode only.

Check the coupon rates of NCDs of Piramal Enterprises Limited:

	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

 

RHP:

https://www.piramal.com/wp-content/uploads/2023/10/Tranche-I-Prospectus.pdf

Tax implications:

• Interest on debentures received by resident debenture holders would be subject to tax at the normal rates of tax in accordance with and subject to the provisions of the I.T. Act.
• As per section 2(29AA) read with section 2(42A) of the I.T. Act, a listed debenture is treated as a longterm capital asset if the same is held for more than 12 months immediately preceding the date of its transfer.
• As per section 2(42A) of the I.T. Act, a listed debenture is treated as a short-term capital asset if the same is held for not more than 12 months immediately preceding the date of its transfer.
• In case debentures are held as stock in trade, the income on transfer of debentures would be taxed as business income or loss in accordance with and subject to the provisions of the I.T. Act.
• Income tax is deductible at source on interest on debentures, payable to resident debenture holders at the time of credit/ payment as per the provisions of section 193 of the I.T. Act.

Piramal Enterprises Limited NCD Tranche III is managed by AK Capital Services, JM Financial, Nuvama Wealth Management, and Trust Investment Advisors Private Limited. Link Intime India Private Limited is the registrar of NCD and IDBI Trusteeship Services Limited is debenture trustee to the same.