Piramal Enterprises' Rs 3,650 cr rights issue over-subscribed around 1.14 times

Piramal Enterprises on Wednesday said its nearly Rs 3,650 crore rights issue that closed on Tuesday was over-subscribed around 1.14 times

Press Trust of India January 22, 2020 18:18:24 IST
Piramal Enterprises' Rs 3,650 cr rights issue over-subscribed around 1.14 times
  • The issue saw participation from most of its existing large institutional investors, as well as retail investors, Piramal Enterprises said

  • The approximately Rs 3,650 crore rights issue offered an opportunity to all existing shareholders to participate in the capital raise, it added

  • We are delighted to receive such a tremendous response from our existing shareholders towards the rights issue especially in this volatile market environment, Piramal Enterprises Chairman Ajay Piramal said

New Delhi: Piramal Enterprises on Wednesday said its nearly Rs 3,650 crore rights issue that closed on Tuesday was over-subscribed around 1.14 times.

"The issue saw participation from most of its existing large institutional investors, as well as retail investors," Piramal Enterprises said in a statement.

The issue has been over-subscribed around 1.14 times. The approximately Rs 3,650 crore rights issue offered an opportunity to all existing shareholders to participate in the capital raise, it added.

Piramal Enterprises Rs 3650 cr rights issue oversubscribed around 114 times

A file photo of Ajay Piramal, chairman of Piramal group. Reuters image.

"We are delighted to receive such a tremendous response from our existing shareholders towards the rights issue especially in this volatile market environment," Piramal Enterprises Chairman Ajay Piramal said.

The enthusiastic response by both retail and institutional shareholders is an affirmation of their confidence in the company's fundamentals, balance sheet and growth prospects, he added.

Through the rights issue, the preferential allotment to CDPQ, the stake sale in Shriram Transport and the recent sale of Decision Resources Group, the company is far exceeding its commitment to bring in Rs 8,000-10,000 crore of equity in 2019-20, Piramal said.

"With these transactions, the company is raising funds aggregating up to around Rs 14,500 crore, which will further strengthen our balance sheet and allow us to target both organic as well as inorganic growth opportunities that the environment is offering," he added.

Updated Date:

also read

Congress lashes out at Piyush Goyal over 'murky' business dealings, says Narendra Modi's credibility is on test
Politics

Congress lashes out at Piyush Goyal over 'murky' business dealings, says Narendra Modi's credibility is on test

The Congress called Piyush Goyal's alleged sale of shares held in a privately-held company at nearly 1,000 times the face value as a "murky saga."

Piramal Enterprises shares tank nearly 14% after company reports net loss of Rs 1,703 cr in March quarter
Business

Piramal Enterprises shares tank nearly 14% after company reports net loss of Rs 1,703 cr in March quarter

Shares of Piramal Enterprises on Tuesday plunged nearly 14 percent after the company reported a net loss of Rs 1,702.59 crore in the quarter ended 31 March

Piramal, Bain Capital join hands for distressed debt investing
Business

Piramal, Bain Capital join hands for distressed debt investing

The partners believe there is over an $1 billion investing opportunity in this space over the next few years