Piramal Enterprises Approves Raising Rs 180 Crore via Bonds

Piramal Finance is a non-banking financial institution or non-bank financial company called NBFC, which is not a bank but a financial institute that can provide loans like retail, wholesale, and fund-based platforms where the leading banks are unable to provide loans. Such institutes are very helpful for individuals and small businesses.

Currently, Piramal Finance has an investment and asset worth of $10 billion, 404 fully serviced branches, and more than 3 million customers across 25 states.

Terms and conditions of Rs 180 crore via NCDs:

The Piramal Finance Board has approved the issuance of the bond with a base issue size of 30 crore along with an IPO, which is called a green shoe option. By allowing the underwriting to sell more shares than planned, the underwriting will oversubscribe and gather 150 crore by listing in BSE and NSE.

The duration of this rupee 180 crore stands for the next 10 years, which means 3650 days with an annual interest rate of 9.50% and a redemption date.

If there is any failure in the interest rate or principal amount, the company, Piramal Finance is liable to pay a 2% extra interest rate from the date of default.

Performance of Primal Finance:

In Q4 FY24, the NBFC posted a net profit of Rs 137.09 crore, which was different from the net loss of Rs 195.87 crore reported in Q4 FY2022-23. As compared to the corresponding quarter last year, the total income for Q4 FY24 increased by 17.97% to Rs 2,528.16 crore.

Conclusion: Primal Finance is aiming to generate more money to expand exponentially all over India, and as their income for this quarter is almost 18%, they can easily manage to pay the  given interest rate on time and utilize this amount for their growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to change. Please consult an expert before making related decisions.