Canadian pension fund's stake in Piramal Enterprises may rise up to 9%

The fundraising announcement was a result of a liquidity challenge faced by non-banking financial companies

Piramal Enterprises’ (PEL’s) Rs 5,400 crore of new fundraising, including a rights issue and a preferential convertible debenture issue to Caisse de Depot et Placement du Quebec (CDPQ) will help Canada’s biggest pension fund to raise stake to around 9 per cent from 2.22 per cent as of September.

The board of directors at the Ajay Piramal-owned conglomerate cleared the rights and preferential issues to CDPQ on Friday. As a result of the proposed equity dilution, the company’s shares fell — wiping out Rs 2,651 crore of market value in one day.

“With existing shareholding, they (CDPQ) will hold about 9 per