Piramal Finance board approves ₹2,100 crore fundraise via QIP

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Piramal Finance has launched a ₹2,100 crore qualified institutional placement (QIP), with the company fixing the floor price at ₹2,102.65 per equity share, according to an exchange filing on Monday.

The issue comprises 9.9 million to 10.5 million equity shares, with the indicative issue price ranging from ₹2,000 per share at the lower end to ₹2,110 per share at the upper end.

Based on the indicative price range, the issue represents a discount of 8.43% at the lower end and 3.39% at the upper end to the stock’s closing price on August 24.

The Committee of Directors (Administration, Authorisation & Finance) approved the opening of the issue, the floor price and the preliminary placement document at its meeting on August 24.

The company had received shareholder approval for the fundraise through a special resolution passed via postal ballot on August 17.

The company has fixed August 24 as the relevant date for the issue. The floor price of ₹2,102.65 per share has been determined in accordance with the pricing formula prescribed under the SEBI ICDR Regulations.

Promoter entity to invest up to ₹1,750 crore

The QIP comes on the same day that Piramal Finance’s board approved a preferential issue of warrants worth up to ₹1,750.03 crore to promoter group entity Nithyam Realty Private Limited.

The company plans to issue up to 82.94 lakh warrants at ₹2,110 each. Each warrant will give the holder the right to subscribe to one fully paid-up Piramal Finance equity share with a face value of ₹2.The preferential issue will be carried out through a private placement and remains subject to statutory and regulatory approvals, including shareholder approval.

Together, the QIP and proposed preferential issue could raise as much as ₹3,850 crore for Piramal Finance.

Piramal Finance shares closed 0.14% higher at ₹2,183.80 on August 24, gaining ₹3 from the previous close.

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