The board of Piramal Enterprises approved the public offering of NCDs up to Rs 3,000 crore

23 Aug 2023 , 11:12 AM

On August 22, Piramal Enterprises said that its board had approved issuing secured, graded, listed, redeemable, non-convertible debentures (NCDs) for up to Rs 3,000 crore in the public market.

‘…the Committee approved the public issuance of Secured, Rated, Listed, Redeemable, Non-Convertible Debentures (‘Debentures’) of the face value of Rs 1,000 each for an amount aggregating up to Rs 3,000 crore in one or more tranches,’ the financial services business stated in a regulatory filing.

The start date for subscription to the public issue was not specified in the company’s regulatory filing.

Three weeks after the business disclosed a substantial decline in pre-provisioning operating profit (PPOP), which excludes provisions, unusual items, and taxes, for the quarter ending June 2023, the decision to issue NCDs was made. According to the corporation, its PPOP was Rs 263 crore, a 58% year-over-year (YoY) decrease. In total, the business was able to post a 24% increase in net profit.

The sale of Piramal Enterprises’ interest in Shriram Finance Limited has also made headlines. For Rs 4,820 crore at Rs 1,545 per share, it sold an 8.34% ownership (3.12 crore shares) in Shriram Finance Limited.

The company has announced a share buyback programme worth Rs 1,750 crore at Rs 1,250 per share towards the end of July of this year.  The record deadline for deciding which shareholders are qualified to take part in the repurchase has been set by the board at August 25.

On the BSE, Piramal Enterprises shares closed on August 22 at Rs 1,058.95 a share, down 0.74% or Rs 7.85 from its previous level.

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