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Piramal Enterprises gains after allotment of CCDs to Canadian pension fund

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Capital Market
Last Updated : Jan 14 2020 | 10:31 AM IST

Piramal Enterprises rose 1.93% to 1464 after preferential allotment of 1.16 lakh compulsorily converted debentures (CCDs) to Canada-based Caisse De Depot Et Placement Du Quebec.

Piramal Enterprises issued 1.16 lakh compulsorily converted debentures (CCDs) to Canadian pension fund manager Caisse de d et placement du Quec (CDPQ) on 19 December 2019, which has increased its total diluted shareholding from 3.68% to 8.99%. The announcement was made after trading hours yesterday, 13 January 2020.

In December 2019, Piramal Enterprises raised Rs 1,750 crore through a preferential allotment of CCDs to CDPQ. The CCDs carry a coupon of 9.28% per annum and can be converted at any time within 18 months from the date of allotment. If not converted earlier, the CCDs shall compulsorily covert into equity shares at the end of 18 months. The CCDs are convertible into equity shares in the ratio of 1:100 (1 CCD shall be converted into 100 equity shares). Upon conversion, the Canadian pension fund's stake in the Ajay Piramal's company would increase to 8.99% from 3.68%.

Caisse De Depot Et Placement Du Quebec was established in 1965. Today, it manages funds worth more than CAD 325 billion across 41 public and parapublic organizations; investing mainly in pension and insurance schemes.

Piramal Enterprises (PEL) is one of India's largest diversified companies, with a presence in financial services, pharmaceuticals and healthcare insights & analytics.

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First Published: Jan 14 2020 | 9:33 AM IST

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