Piramal Finance QIP: NBFC To Raise Up To ₹2,100 Crore; Promoter To Invest ₹1,750 Crore Via Warrants
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Piramal Finance's board has cleared a QIP of up to Rs 2,100 crore and a preferential warrant issue worth Rs 1,750.03 crore to promoter entity Nithyam Realty, months after approving a broader Rs 4,000 crore fundraising plan in July.
Piramal Finance is set to raise up to ₹2,100 crore through a qualified institutions placement (QIP), with the company's board approving the launch of the issue on August 24.
The company disclosed the development in an exchange filing on August 24, fixing ₹2,102.65 per share as the floor price for the QIP. The relevant date for determining the floor price has also been set as August 24, 2026.
The fundraise is part of the company's broader capital-raising plan. According to a Mint report, the proceeds from the QIP are expected to support Piramal Finance's lending requirements and help maintain its capital adequacy ratios, among other needs.
At the same time, the board has cleared a separate fundraise through the issue of warrants to Nithyam Realty Private Limited, a promoter of the company. The proposed preferential issue will be made on a private placement basis under an investment agreement between the company and the promoter entity.
Piramal Finance plans to issue up to 82.94 lakh warrants with a face value of ₹2 each. The warrants will be priced at ₹2,110 apiece, taking the total size of the proposed issue to ₹1,750.03 crore.
The warrant issue price is ₹24.94 above the floor price of ₹2,085.06 per share specified for the preferential issue.
Under the terms approved by the board, Nithyam Realty will have to pay 25% of the warrant issue price at the time of subscription. The remaining 75% will become payable when the warrants are converted into equity shares.
The warrants will have a tenure of 18 months from the date of allotment. They can be exercised in one or more tranches during this period. Any warrants that are not converted within the stipulated tenure will lapse, with the amount already paid by the subscriber on those warrants being forfeited.
The latest fundraise plans follow an earlier announcement by Piramal Finance. While announcing its June quarter results on July 16, the company had said its board had approved a proposal to raise up to ₹4,000 crore.
This is a developing story and will be updated a smore details emerge
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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