Piramal Enterprises will issue 82.94 lakh warrants worth Rs 1,750.03 crore to its promoter group. The board approved the move on October 5.

The warrants go to Nithyam Realty, a promoter-group firm. The company will get Rs 437.51 crore upfront. That is 25 percent of the total issue price.

The board had earlier approved Rs 2,000 crore in non-convertible debentures. The NCDs were approved on September 28.

The NCDs carry an 8.62 percent coupon. They have a tenure of 3 years and 45 days. Allotment is set for October 8.

The warrants convert into equity shares later. The infusion will strengthen the company’s capital base.

Piramal Enterprises is a diversified financial services firm. The fundraise signals the promoter group’s confidence in the business. The board approved the warrant issue on October 5. Promoter-group firm Nithyam Realty will pay Rs 437.51 crore upfront, which is 25 percent of the total issue price.

Sources:

• https://flashfinance.news/article/2746-piramal-enterprises-board-okays-rs-1750-crore-preferential-issue
• https://www.thehindubusinessline.com/companies/piramal-enterprises-warrants-nithyam-realty-1750-crore/article71546610.ece
• https://www.moneycontrol.com/news/business/piramal-enterprises-rs-1750-crore-warrant-issue_13589245.html