Piramal Capital and Housing Finance raises Rs 4,050 crore through NCDs

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Piramal Capital & Housing Finance Limited (PCHFL), has raised Rs 4,050 crore through the issuance of long-term, five-year Non-Convertible Debentures (NCDs) in two tranches, the company said in a statement.

The first tranche of the NCD issue amounting to Rs 2,000 crore opened on March 10, with a pay-in on March 12, 2021. The second tranche of the remaining Rs 2,050 crore opened on March 18 with a pay-in on March 19, 2021, PCHFL said.

Leading rating agency, CARE Ratings has assigned an ‘AA’ rating for both the issuances, it added.

Commenting on the development, Rajesh Laddha, Executive Director, Piramal Enterprises said, “Since the beginning of FY 2020, we have significantly transformed the liabilities profile towards more stable, long-term sources of funds."

The company has raised over Rs 50,000 crore since April 2019, through multiple long-term borrowings and equity transactions, thereby materially strengthening the Balance Sheet, he added.

Laddha said that the five-year NCD issuances of Rs 4,050 crore re-affirm the significant improvement of our liabilities side and the strength of our balance sheet. "We are now well-positioned to tap growth opportunities across both our Financial Services and Pharma businesses," he said.

The company said it has raised over Rs 32,000 crore of long-term borrowings since April 2019, while significantly reducing the Commercial Paper exposure from Rs 18,017 crore in September 2018 to Rs 1,050 crore as of December 2020.

The fundraise comes weeks after the Reserve Bank of India (RBI) gave PCHFL the approval to acquire troubled Dewan Housing Finance Corporation Ltd (DHFL).