Piramal Enterprises gains on board nod to raise Rs 3,000 crore from NCDs

Piramal Enterprises Limited shares traded 1 percent higher to Rs 1,069 in early trade on August 23 following board approval to raise Rs 3,000 crore through non-convertible debentures.

Non-convertible debenture is a financial instrument for raising long-term funds by companies through a public issue. NCDs, as the name suggests, can’t be converted into shares.

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The move would be carried out in one or more tranches, subject to regulatory approvals, as applicable, the company said in an exchange filing on August 22.

The development comes just three weeks after Piramal reported a significant decline in its pre-provisioning operating profit (PPOP) for the quarter ended in June 2023. The company revealed that its PPOP stood at Rs 263 crore, reflecting a 58 percent year-on-year decrease. However, despite this drop in PPOP, the company managed to achieve a 24 percent growth in its net profit.

The company towards the end of July also announced a share buyback scheme worth Rs 1,750 crore at Rs 1,250 apiece. The board has fixed August 25 as the record date for the purpose of determining the shareholders eligible to participate in the buyback.

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