NBFC Piramal Finance will raise capital worth Rs 3,850 crore through the issuance of various securities, the company said in its regulatory filing. Of the total float, Rs 2,100 crore has already been raised through QIP placement, it added.
Piramal Finance: QIP details
The home and business loan provider announced on August 21 that it has raised Rs 2,100 crore through a QIP placement by issuing equity shares to qualified institutional buyers (QIBs).
As a part of the transaction, the company allotted 99,62,606 equity shares of a face value of Rs 2,110, amounting to nearly Rs 2,100 crore.
Piramal Finance: Strong participation from mutual funds
The QIP opened for participation on August 24 and closed on August 28. The issue attracted strong participation from nine prominent domestic mutual funds, including ICICI Prudential Mutual Fund, Nippon India Mutual Fund, Kotak Mutual Fund, Quant Mutual Fund, Axis Mutual Fund, Motilal Oswal Mutual Fund, Tata Mutual Fund, Franklin Templeton Mutual Fund, and Aditya Birla Sun Life Mutual Fund.
Other marquees that participated include BlackRock, Goldman Sachs Asset Management, and Eastspring Investments.
Following the completion of the transaction, Piramal Finance’s paid-up equity share capital increased to Rs 47.33 crore, including over 23.66 crore equity shares of Rs 2 each from Rs 45.34 crore capital comprising 22.66 crore equity shares.
“ The QIP saw strong participation from a diverse mix of leading domestic and international institutional investors, underscoring confidence in Piramal Finance’s transformation into a scaled, retail-led, granular and diversified financial services franchise,” Piramal Finance said in its exchange filing.
Nomura Financial Advisory and Securities (India) Private, Motilal Oswal Investment Advisors, and JM Financial were the investment bankers to the QIP placement.
Cyril Amarchand Mangaldas acted as legal advisers to the company, while Trilegal acted as the legal advisor, and Linklaters Singapore was the internal legal counsel on the issue.
Piramal Finance: Board approved issuance of preferential warrants
Additionally, the board of directors on August 24 approved the raising of funds worth Rs 1,750 crore through the preferential issue of warrants, subject to the requisite approvals.
When completed, together these transactions will infuse capital worth Rs 3,850 crore.
Piramal Finance: Management commentary
Speaking on QIPs placement, Anand Piramal, Chairman, Piramal Finance, said, “ This milestone reflects the hard work and commitment of our teams across the organisation. It also places a greater responsibility on us to deliver with consistency, prudence and purpose. As we move forward, our focus will remain on creating long-term value for all stakeholders while enabling many more customers and communities to participate in India’s growth story.”
Piramal Finance share price
The company’s stock was trading flat in Monday’s intraday trade. Over the past one month, its share price has advanced by more than 10%, while over the past six months, its stock has delivered a return of around 36%.