Piramal Enterprises Invests Rs 1,000 Crore In Housing Finance Arm
The housing finance arm will be utilising the investment for business/general corporate purposes.
Piramal Enterprises invested Rs 1,000 crore in wholly owned subsidiary Piramal Capital & Housing Finance Ltd. via subscription to rights issue.
The housing finance arm will be utilising the investment for business/ general corporate purposes, according to an exchange filing on Tuesday posted on the National Stock Exchange and the BSE.
There is no change in the shareholding percentage of the parent company in the subsidiary after the investment.
The transaction between the holding company and its subsidiary will not be categorised as related-party transactions.
The interest of the promoter companies of Piramal Enterprises is only to the extent of Piramal Capital being a wholly owned subsidiary.
This development took place 11 days after the company had announced that it would be raising Rs 2,000 crore through the public issuance of non-convertible debentures each worth Rs 1,000 crore.
Shares of Piramal Enterprises fell as much as 0.89% during the day to Rs 1,092.5 apiece on the National Stock Exchange. It closed 0.21% higher at Rs 1,104.7 per share, compared to a 0.10% decline in the benchmark Nifty. The share price has risen 18.61% on a year-to-date basis.
One out of the seven analysts tracking the company have a 'buy' rating on the stock, two suggest 'hold' and four recommend 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential downside of 12.0%.
