The non-convertible debentures (NCDs) issue involved in the Securities and Exchange Board of India’s (Sebi) investigation of JM Financial was floated by Piramal Enterprises. Although the capital market regulator has not named the issuer, the details provided in the Sebi’ order match with the NCD issue of Piramal Enterprises.
In November 2023, Piramal Enterprise raised Rs 533 crore through the issue of NCDs. The base issue size was Rs 200 crore, with a green shoe option of up to Rs 800 crore, aggregating up to Rs 1,000 crore. JM Financial, AK Capital Services, Nuvama Wealth Management and Trust Investment Advisors were the merchant bankers to the issue. The issue opened on October 19, 2023 and closed on November 2, 2023.
A Piramal Enterprises official said that the company will not offer any comment as the order is not related to them.
The market regulator, in an interim order issued on March 7, barred JM Financial from accepting any new mandates to act as a lead manager for public issues of debt securities. However, the company can continue in this role for ongoing mandates for a period of 60 days from the date of the order.