Piramal Enterprises Limited (PEL) is a leading diversified financial services company in India. It is a part of Piramal Group, which has a global presence in more than 100 countries. PEL offers a wide range of financial services, including retail and wholesale lending, asset management, and investment banking.
PEL is launching a public issue of non-convertible debentures (NCDs) on October 19, 2023. The issue will close on November 2, 2023, with an option for early closure. The issue comprises a base size of ₹1,000 crores and a shelf size of ₹3,000 crores.
| Issuer | Piramal Enterprises Limited |
| Issue Opens | OCTOBER 19, 2023 |
| Issue Closes | NOVEMBER 2, 2023 |
| Face Value | 1000 |
| Issue Price | 1000 Per NCD |
| Nature of Instrument | SECURED, RATED, LISTED, REDEEMABLE NON-CONVERTIBLE DEBENTURES |
| Minimum Application | `10,000 (10 NCDs) across all series |
| Rating | [ICRA]AA (Stable) by ICRA Ltd & CARE AA |
The NCDs will be offered in four series, with tenures of 2, 3, 5, and 7 years. The interest rates will range from 9.34% to 9.75%. The NCDs will be listed on the BSE and NSE.
ISSUE STRUCTURE
| Series | I | II* | III | IV |
| Frequency of Interest Payment | Annual | Annual | Annual | Annual |
| Minimum Application | 10,000 (10 NCDs) across all series | |||
| In multiples of thereafter | 1,000 (1 NCD) | |||
| Face Value/Issue Price of NCDs (`/ NCD) | 1,000.00 | |||
| Tenor | 2 years | 3 years | 5 years | 10 years |
| Coupon (% per annum) for NCD Holders in all Category of NCD Holders | 9.00% | 9.05% | 9.20% | 9.35% |
| Effective Yield (% per annum) for NCD Holders in all Category of NCD Holders | 9.00% | 9.05% | 9.19% | 9.34% |
| Mode of Interest Payment | Through various modes available | |||
| Amount (` / NCD) on Maturity for NCD Holders in all Category of NCD Holders | 1,000 | 1,000 | 1,000 | 1,000 |
| Maturity / Redemption Date (from the Deemed Date of Allotment) | 2 years | 3 years | 5 years | 10 years |
| Put and Call Option | Not Applicable | |||
| Nature of indebtedness | SECURED, RATED, LISTED, REDEEMABLE NON-CONVERTIBLE DEBENTURES | |||
The proceeds from the NCD issue will be used for general corporate purposes, including repayment of debt and financing of growth initiatives.
Key features of the Piramal Enterprises Limited NCD IPO 2023:
- Issue type: Public issue of non-convertible debentures (NCDs)
- Issue size: ₹1,000 crores base size, ₹3,000 crores shelf size
- Tenures: 2, 3, 5, and 7 years
- Interest rates: 9.34% to 9.75%
- Listing: BSE and NSE
- Issue period: October 19, 2023, to November 2, 2023 (with an option for early closure)
- Allotment basis: First come first served basis
Investor eligibility:
- Resident individuals
- Hindu undivided families (HUFs)
- Partnerships
- Companies
- Trusts
- Registered societies
- Non-resident Indians (NRIs) and persons of Indian origin (PIOs)
Risks associated with the investment:
- Like any other investment, NCDs also carry certain risks. Some of the key risks associated with NCDs include:
- Interest rate risk: The value of NCDs can fluctuate with changes in interest rates.
- Credit risk: There is a risk that the issuer of the NCDs may default on its payment obligations.
- Liquidity risk: NCDs may not be as liquid as other investments, such as shares or mutual funds.
Overall, the Piramal Enterprises Limited NCD IPO 2023 is a good investment opportunity for investors who are looking for a fixed-income investment with moderate risk. PEL is a well-established and financially sound company with a strong track record. The NCDs are also offering attractive interest rates. However, investors should carefully consider their own investment objectives and risk tolerance before investing in NCDs.