Piramal Enterprises dips by 8.67 per cent after raising capital

Piramal Enterprises announced that its Board has approved fresh capital raise of Rs. 5,400 crores through a Rights Issue and preferential allotment of Compulsory Convertible Debentures (CCDs).

The Rights Issue of Rs. 3,650 crores at Rs. 1,300 per share is intended to give an opportunity to all its existing shareholders to participate in the capital raise at an attractive price. The promoters of the company will participate and are committed to the success of the Rights Issue. In addition, the company plans to raise Rs. 1,750 crores through the preferential allotment of CCDs (at a conversion price of Rs. 1,510 per share) to Canadian institutional investor, Caisse de dépôt et placement du Québec (CDPQ). The preferential allotment will take place by end November 2019 and the rights issue is expected to be completed by end February 2020.

Piramal Enterprises is one of India's largest diversified companies, with a presence in Financial Services, Pharmaceuticals and Healthcare Insights & Analytics. Company's consolidated revenues were US$1.9 billion in FY2019, with around 40 per cent of the revenues generated from outside India.

On Friday, the stock of Piramal Enterprises opened at Rs. 1730.10 per share and made an intraday high and low of Rs. 1742 and Rs. 1425, respectively on the BSE. At 2.40 pm the stock was trading at Rs. 1576.75, down by 8.67 per cent.