1 week ago
Piramal Finance Approves Rs 1,705 Crore Preferential Warrants Issue
Piramal Finance wants to raise money by giving special warrants to its promoter group.
The buyer of these warrants will be Nithyam Realty Private.
The company plans to issue 82,94,000 warrants.
Each warrant costs Rs 2,110 and can later be exchanged for one equity share.
Nithyam Realty must pay 25% of the price when subscribing.
The remaining 75% will be paid when the warrants are exercised.
The warrants can be used within 18 months of allotment.
If the issue goes ahead, the promoter group’s stake will increase by 3.53%.
Piramal Finance’s stock was down 2% during Monday’s intraday trading session.
Piramal Finance approved issuing 82,94,000 warrants worth Rs 1,705.03 crore to promoter-group entity Nithyam Realty Private.
Each warrant is priced at Rs 2,110, including a face value of Rs 2 and a premium of Rs 2,108.
The issue price is Rs 24.92 above the SEBI-determined floor price of Rs 2,085.06 per share.
The warrants will have an 18-month tenor and may be exercised in one or more tranches.
After the issue, the subscribers’ stake is expected to rise by 3.53% on a fully diluted basis.
- Who
- Piramal Finance and its promoter-group entity, Nithyam Realty Private.
- What
- Piramal Finance approved a preferential issue of 82,94,000 warrants worth Rs 1,705.03 crore.
- Where
- The issue will be conducted through a private placement and disclosed in a regulatory filing.
- When
- The warrants will have an 18-month tenor from the date of allotment; the stock was down 2% in Monday’s intraday session.
- Why
- To raise Rs 1,705.03 crore through warrants that can be converted into equity shares.
Key facts
- Issue size
- Rs 1,705.03 crore
- Number of warrants
- 82,94,000
- Issue price
- Rs 2,110 per warrant
- Floor price
- Rs 2,085.06 per equity share
- Warrant tenor
- 18 months from allotment
- Promoter stake increase
- 3.53% on a fully diluted basis
- Payment structure
- 25% at subscription and 75% upon exercise
Quotes
Piramal Finance regulatory filing
The company’s regulatory filing describing the floor price for the proposed warrant issue.
“The floor price determined in accordance with Regulation 164(1) of the SEBI ICDR Regulations for the proposed preferential issue of Warrants to the Subscriber is ₹2085.06 per Equity Share (upon exercise of the Warrant)”
financialexpress.com
Sources
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