Piramal Housing to raise Rs 2K from SBI, other banks
State Bank of India (
) and Bank of Baroda (BOB) could subscribe to those papers. “SBI is likely to subscribe the most or even the whole if other public sector banks do not show up,” said an executive familiar with the matter.
Individual banks could not be contacted immediately. The issue will open for subscription on the exchange bidding platform.
“A meeting of the committee of directors will be held on Wednesday… to consider and approve the issue of secured, rated, listed, redeemable Non-Convertible Debentures amounting up to Rs. 2,000 crore on a private placement basis,” the company said in customary exchange filings. It did not disclose the terms of the proposed issuance.
Those bonds will likely offer 9.25 percent with a five-year maturity.
This is the first issuance since November last year when the non-banking finance company, rated as AA, raised Rs 175 crore with one and a half-year maturity.
About a month ago, lenders of indebted DHFL approved the resolution plan by Piramal group, which will merge DHFL into Piramal Housing. The Reserve Bank of India has given its green signal, with the lenders seeking NCLT’s nod for the final go-ahead.
Jairam Sridharan, former Axis Bank CFO who joined Piramal consumer finance business more than a year ago, is expected to run the merged entity as chief executive officer.
