Piramal Enterprises Seeks To Raise Rs 1,750 Crore From Canada’s CDPQ
Piramal Enterprises Ltd. is seeking shareholders' approval to raise Rs 1,750 crore from a Canadian investor by issuing compulsorily convertible debentures.
In a notice for an extraordinary general meeting to be held in Mumbai on Nov. 25, the company said it requires additional funding for various purposes, including general corporate purposes, in view of its future outlook, growth targets and prospects.
On Oct. 25, Piramal Enterprises’ board approved raising of funds aggregating up to Rs 5,400 crore, subject to regulatory approvals. On the same day, the company entered into a securities subscription agreement with the investor, Caisse de depot et placement du Quebec, or CDPQ, for raising Rs 1,750 crore.
As part of the agreement, Piramal Enterprises will issue and allot 1,15,894 compulsorily convertible debentures at a face value of Rs 1.51 lakh each.
"The CCDs shall be listed on the Stock Exchanges. The term of each CCD shall be 18 months from the date of allotment, unless converted earlier by the holder of the CCD," Piramal Enterprises said in the notice.
CDPQ's shareholding in Piramal Enterprises after the issue will increase to 8.99 percent from 3.68 percent earlier, it added.