NBFC Piramal Finance has approved the issuance of warrants worth Rs 1,705 crore via the means of a preferential issue on a private placement basis to its promoter group, Nithyam Realty Private, at an issue price of Rs 2,110 per warrant, comprising a face value of Rs 2 and a premium of Rs 2,108 per equity share
Piramal Finance: Preferential issue details
The lender will issue 82,94,000 warrants, amounting to Rs 1,705.03 crore, each carrying a right to subscribe for one equity share of Rs 2. The warrant will be issued at a price of Rs 2,110, comprising a premium of Rs 2,108 per share, with a face value of Rs 2.
This will be done via a preferential issue on a private placement basis to the lender’s promoter entity, Nithyam Realty. The warrant issuance will take place in accordance with the provisions of the Securities and Exchange Board of India.
The approved issue price of Rs 2,110 per equity share, upon the exercise of the warrant, is Rs 24.92 higher than the floor price, the company said in its regulatory filing. “The floor price determined in accordance with Regulation 164(1) of the SEBI ICDR Regulations for the proposed preferential issue of Warrants to the Subscriber is ₹2085.06 per Equity Share (upon exercise of the Warrant),” the regulatory filing read.
The tenor of the warrant is 18 months from the date of allotment and shall be executed in one or more tranches. Post-issuance, the subscribers’ stake in the company will increase by 3.53% on a fully diluted basis. Nithyam Realty will pay 25% of the issue price per warrant at the time of subscription, and the balance 75% will be payable upon the exercise.
In addition, Piramal Finance’s board of directors has also approved an investment agreement with the subscriber, i.e., Nithyam Realty.
Piramal Finance share price
In Monday’s intraday trading session, the company’s stock was down 2%. Over the past one month, the NBFC’s stock has delivered a return of nearly 2%, while over the past six months, it has advanced by 21%.