Piramal Capital expecting to raise up
Piramal Capital and Housing Finance Limited (PCHFL) said on Wednesday that it is seeking to raise to Rs. 1000 crore through the issuance of non-convertible long-term bonds. The basic issuance scale of the Tranche-I issue is Rs. 200 crores, with the option to keep the oversubscription to Rs. 800 crore.
The term of the NCD is 26 months, 36 months, 60 months, and 120 months. On an annualized basis, the coupons range from 8.1% to 9%. In the 26-month NCD, there are two payment methods: annual and cumulative interest.
Piramal Retail Finance CEO Jairam Sridharan said that the funds would be used to develop the retail business. “In the past year, we have launched many new businesses in the retail sector, including affordable housing, digital loans and used car financing. We hope to continue to do more of these things in the next few months, so we feel that we need to establish the correct funding structure for this business. This is where NCD comes in,” Sridharan added.
This issue will begin accepting subscriptions on July 12, 2021, and will end on July 23. There are NCDs that have been rated CARE AA (CWD) by Care Ratings and ICRA (AA) (under credit watch with developing implication), and Icra Ratings rated them with (negative) outlook. The bond is proposed to be listed on BSE and NSE.
In June this year, the Mumbai Court of the National Company Law Tribunal (NCLT) approved PCHFL’s solution to the debt-laden Dewan Housing Finance Corporation (DHFL). Rajesh Laddha, Chief Financial Officer of Piramal Group, said that after the DHFL acquisition, PCHFL’s loan book size would be close to 58,000-60,000 crore. The retail and non-retail portfolios will each be close to approximately 50%.
Laddha added that in the DHFL book, there would be no additional post-merger configuration requirements because they will record the portfolio in a way that does not require incremental configuration.