Ajay Piramal-controlled Piramal Enterprises Ltd has raised ₹2,590 crores through the issuance of debt securities to US-based investment firm Farallon Capital, said a person aware of the development. Farallon is a San Francisco based investment firm with $29 billion in assets under management. “The money was raised through three year NCDs (non-convertible debentures) at a rate of 9%,” said the person, adding that the capital will be used for repayment of existing loans of the group as well as for other purposes.
Farallon is an active investor in India and recently invested $49 million in debt instruments of Emami group companies. Spokespersons for Piramal Enterprises and Farallon could not be immediately reached for comment. The Piramal group has taken several steps in the past six months to manage its liquidity. The biggest focus of the group has been to raise equity capital.
In January, the group sold its healthcare insights and analytics business to NYSE-listed Clarivate Analytics Plc for $950 million. The deal includes $900 million on closing and $50 million to be received at the end of 12 months thereon. Piramal Enterprises also raised ₹3,630 crores through a rights issue in January. The group is in advanced talks to sell a 20% stake in its pharma business to private equity firm The Carlyle Group, which could fetch it around ₹3,000-3,500 crore, Mint reported on 25 June. “The management has been taken steps to raise equity as well as long term borrowings, so thereby resulting in overall consolidated debt levels by reducing by an estimated 29%, as compared to debt levels in fiscal 2019. Nevertheless, overall repayment obligations still are considerable in fiscal 2021 at an overall level,” said rating agency Crisil in a note on 29 April.
“These obligations are likewise expected to be met by existing consolidated cash surpluses that estimated at over Rs.2,800 crore at 31st March 2020, cash generation from operations, available consolidated unutilized bank limits of around Rs. 4,300 crore, long term borrowings and asset inflows from monetization of Shriram group investments and part stake sale in the pharma business,” it added.