Piramal Capital to raise Rs. 1,000 cr via NCDs

Mumbai: Piramal Capital and Housing Finance Ltd (PCHFL) Wednesday said it is looking to raise up to Rs 1,000 crore by issuing non-convertible debentures (NCDs) of various tenors.

The tranche-I issue has a base issue size of Rs200 crore with an option to retain oversubscription up to Rs800 crore. The tenors of NCDs are 26 months, 36 months, 60 months and 120 months, with coupons in the range of 8.1 per cent to 9 per cent on an annualised basis. In the 26 months-NCD, there are two interest payment options- annual and cumulative.

Jairam Sridharan, CEO, Piramal Retail Finance, said: "The funds will be utilised for growing the retail business. Over the last year, we have launched a lot of new businesses in retail, including affordable housing, digital lending and used car financing. We hope to continue to do more of this in the coming months, and so we feel the need to have the right kind of funding structure for that business, which is where this (NCD issue) comes in."

The issue will open for subscription on July 12, 2021, and close on July 23. The NCDs have been rated CARE AA (CWD) (under credit watch with developing implications) by Care Ratings and ICRA (AA) with outlook (negative) by Icra Ratings. The bonds are proposed to be listed on BSE and NSE. In June this year, the Mumbai bench of the National Company Law Tribunal (NCLT) had approved the resolution plan of PCHFL for the debt-ridden Dewan Housing Finance Corporation (DHFL).