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Piramal Capital likely to float Rs 1,000-1,500 crore bond issue

Piramal denied it is raising cash by selling bonds.

, ET Bureau|
Last Updated: Nov 29, 2019, 07.32 AM IST|Original: Nov 29, 2019, 07.32 AM IST
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Separately, a market source said the company was trying to improve its asset quality.
Mumbai: Piramal Capital & Housing Finance is likely to test investor appetite with a Rs 1,000-1,500 crore bond sale, expected in the next few weeks.

The company has reached out to select market participants for the bonds with three-five-year maturity, said three market sources with direct knowledge of the matter.

“The company may have also reached out to one large governmentowned domestic institutional investor to place such proposed bonds directly,” one of the persons cited above told ET. It is to be seen if the company finally manages to hit the market.

Piramal denied it is raising cash by selling bonds. “Even though we keep raising funds from time-to-time, as on date, we do not have any such issuance planned,” said the group spokesperson.

For the past few months, the company has been looking to raise money as a crisis of capital has weighed on non-banking finance companies since September last year. Investors broadly tend to shy away from those non-bank lenders, which extended credit to builders.

Earlier in October, billionaire Ajay Piramal-led Piramal Enterprises said it was going to raise Rs 1,750 crore via a preferential allotment of shares to Canadian pension fund, Caisse de dépôt et placement du Québec (CDPQ).

“The proposed fund infusion by CDPQ is now cited as a key strength to investors that had earlier shied away from NBFCs,” said a domestic arranger of bonds.

Separately, a market source said the company was trying to improve its asset quality. “The company is attempting to reduce its share of bad loans that are coming from builder loan portfolios,” said the source.


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