Piramal Enterprises To Consider Raising Rs 300 Crore Via Non-Convertible Debentures

Piramal Enterprises Ltd. will consider raising funds up to Rs 300 crore through non-convertible debentures in the meeting scheduled for Thursday.

Out of the Rs 300 crore to be raised, Rs 200 crore will be allocated to the green-shoe option at a face value of Rs 1 lakh each, according to an exchange filing on Monday.

In February, the non-banking financial company approved a proposal to raise up to Rs 450 crore by public issuance of non-convertible debentures.

On Feb. 28, Piramal Enterprise received goods-and-services-tax demand order valuing to Rs 1,502 crore. The GST amount included tax, interest and penalties imposed by the office of the deputy commissioner of state tax, Maharashtra. The leaved on the company amounted to Rs 83 crore.

The tax demand pertains to the company's sale of its pharma business to Piramal Pharma Ltd. in fiscal 2021, including the transfer of subsidiary companies worth Rs 4,487 crore.

Shares of Piramal Enterprises closed 2.65% higher at Rs 1,022.85 apiece on the National Stock Exchange on Monday, compared to a 1.32% rise in the benchmark Nifty. The stock has risen 19.18% in the last 12 months and declined 7.41% on a year-to-date basis.

Four out of the seven analysts tracking the company have a 'sell' rating on the stock, two recommend 'hold' and one suggests 'buy', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential downside of 9.1%.