Mumbai (Maharashtra) [India], Jan 23 (ANI): Piramal Enterprises Ltd has announced the successful completion of its Rs 3,650 crore rights issue that saw participation from most of its existing large institutional investors as well as retail investors.
The issue has been oversubscribed by nearly 1.14 times. The issue offered an opportunity to all its existing shareholders to participate in the capital raise.
"Through the rights issue, preferential allotment to CDPQ, 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 crore to 10,000 crores of equity in FY20," said Chairman Ajay Piramal.
"With these transactions, the company is raising funds aggregating up to 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 said in a statement.
The company's fund-raise to the extent of Rs 14,500 crore in FY20 includes: Rs 6,750 crore from the sale of Decision Resources Group to Clarivate Analytics, Rs 3,650 crore from the rights issue, Rs 1,750 crore from CDPQ against preferential allotment of compulsory convertible debentures, and Rs 2,300 crore from the stake sale in Shriram Transport Finance.