Piramal Capital to raise up to ₹3,000 crore via NCDs
- These bonds are being offered for 9.25% with a five-year maturity
- The bidding date is on Thursday and the pay-in date is on Friday
Mumbai: Billionaire Ajay Piramal backed Piramal Capital & Housing Finance Ltd (PCHFL) is looking to raise up to ₹3,000 crore in the second consecutive bond sale over the last one week. The housing finance company will issue secured non-covertible debentures with a base issue size of ₹2,000 crore and a green shoe option of ₹1000 crore.
Last week PCHFL, with a rating of AA, had raised ₹2,000 crore from a group of public sector banks in a bond sale.
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These bonds are being offered for 9.25% with a five-year maturity. The bidding date is on Thursday and the pay-in date is on Friday.
The back to back domestic bond issuances by Piramal comes after In February PCHFL had received the go ahead from Reserve Bank of India to acquire bankrupt mortgage financier Dewan Housing Finance Corp Ltd (DHFL). Lenders to the troubled mortgage financier are now in the process of approaching the National Company Law Tribunal (NCLT) with the resolution proposal for a final approval. Piramal had offered ₹37, 250 crore as part of the resolution plan, which includes a higher upfront cash payment. The plan received 94% votes of the committee of creditors.
As on 31 March 2020, PCHFL’s standalone net worth stood at ₹10,195 crore compared to ₹9,274 crore a year ago. The company reported a capital adequacy ratio of 34.89% as on 31 March 2020.
It has a diversified resource profile with bank loans accounting for 65% of its borrowings and long-term capital market instruments accounting for 19% . Nearly 70% of the loan book is concentrated towards the real estate sector. The gross non-performing assets of the company stood at 2.5% of the total loan book as on 30 June 2020.
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