Piramal Enterprises Board Approves to Raise ₹450 Crore Through NCDs

Piramal Enterprises Ltd. (PEL) is planning to raise ₹450 crore by issuing non-convertible debentures (NCDs) on a private placement basis. The company’s board approved the proposal on February 13, 2025, according to an exchange filing.

Breakdown of the NCD Issuance

The issuance includes a base size of ₹75 crore, with a green shoe option to retain oversubscription of up to ₹375 crore, bringing the total issue size to ₹450 crore. Each NCD has a face value of ₹1 lakh. These debentures will be listed on the Wholesale Debt Market (WDM) segment of the NSE.

The NCDs come with a coupon rate of 9.10% per annum, with interest paid annually and at the time of redemption. The tenure of the debentures is 3,651 days, with the redemption scheduled for February 23, 2035.

Security and Default Terms

The debentures will be secured through a first-ranking pari-passu charge on the company’s hypothecated assets. The security cover ratio is required to be maintained at or above 1x.

In case of default in interest or principal repayment beyond three months, an additional interest of 2% per annum over the coupon rate will be charged until the default is resolved.

Financial Performance in Q3 FY25

For the quarter ended December 31, 2024, Piramal Enterprises reported a net profit of ₹38.6 crore. This was a shift from a net loss of ₹2,377.6 crore in the same quarter of the previous year.

Revenue fell by 1.1% year-on-year to ₹2,448.6 crore. EBITDA declined 10.8% to ₹1,074.7 crore, with the EBITDA margin dropping from 48.7% in Q3 FY24 to 43.9% in Q3 FY25.

As of 10:17 AM on February 14, shares of Piramal Enterprises Ltd. were trading at ₹943.90, down 2.10% for the day. Over the past month, the stock has declined by 8.01%, but it remains up 6.79% over the past year.

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