Piramal Capital and Housing Finance Limited (PCHFL) Wednesday said it is looking to raise up to Rs 1,000 crore by issuing non-convertible debentures of various tenors. The tranche-I issue has a base issue size of Rs 200 crore with an option to retain oversubscription up to Rs 800 crore. The tenors of NCDs are 26 months, 36 months, 60 months and 120 months, with coupons in the range of 8.1 per cent to 9 per cent on an annualised basis.
In the 26 months-NCD, there are two interest payment options- annual and cumulative. Piramal Retail Finance Chief Executive Officer Jairam Sridharan said the funds will be utilised for growing the retail business. Over the last year, we have launched a lot of new businesses in retail, including affordable housing, digital lending and used car financing. We hope to continue to do more of this in the coming months, and so we feel the need to have the right kind of funding structure for that business, which is where this (NCD issue) comes in, Sridharan said.
The issue will open for subscription on July 12, 2021, and close on July 23. The NCDs have been rated CARE AA (CWD) (under credit watch with developing implications) by Care Ratings and ICRA (AA) with outlook (negative) by Icra Ratings. The bonds are proposed to be listed on BSE and NSE. In June this year, the Mumbai bench of the National Company Law Tribunal (NCLT) had approved the resolution plan of PCHFL for the debt-ridden Dewan Housing Finance Corporation (DHFL). Piramal Group Chief Financial Officer Rajesh Laddha said post the acquisition of DHFL, PCHFL’s loan book size will be close to Rs 58,000-60,000 crore and the retail and non-retail mix will be close to about 50 per cent each on an immediate basis.
One of the primary reasons or motivations for us to do this (DHFL) acquisition was that on day one, the retail portfolio will go up significantly and the concentration of non-retail will come down, Laddha said. He said there will not be any additional provisioning requirement after the acquisition. On DHFL book, there will not be any additional provisioning requirement post-merger as well because we will be recording the portfolios in a way where incremental provision will not be required, Laddha added.
