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Piramal Enterprises gains after CCI OKs issue of CCDs to Canadian pension fund

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Capital Market
Last Updated : Dec 11 2019 | 10:31 AM IST

Piramal Enterprises rose 1.89% to Rs 1640.25 after Competition Commission of India (CCI) on Tuesday approved subscription of compulsorily convertible debentures (CCDs) of the company by Caisse de depot et placement du Quebec.

In October, Piramal Enterprises had entered into an agreement with Canadian institutional investor, Caisse de d et placement du Quec (CDPQ) to raise Rs 1,750 crore via issuance of 1,15,894 CCDs, carrying a face value of Rs 1.51 lakh each.

Each CCD will be convertible into 100 equity shares, at a conversion price of Rs 1,510 per share and will have a term of 18 months from the date of allotment, unless converted earlier by CDPQ. Upon conversion, the Canadian pension fund's stake in the Ajay Piramal company will rise to 8.99% from 3.68%.

Piramal Enterprises has tumbled 17.24% in last three months as compared to a 1.54% decline in Nifty Pharma index.

The stock trades below its 50 days and 200 days simple moving average placed at 1669.84 and 2031.95 respectively.

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: Dec 11 2019 | 9:23 AM IST

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