By Aayush Khanna
Piramal Enterprises Limited (NS:PIRA), a significant and listed non-banking financial company (NBFC), is currently offering a lucrative investment opportunity with its ongoing bond Initial Public Offering (IPO).
The company has filed its Tranche I prospectus for a public issue of secured, rated, listed, redeemable, non-convertible debentures (NCDs) with a face value of INR 1,000 each. The Tranche I Issue boasts a base size of INR 200 crore, with a green shoe option that can extend it to INR 1,000 crore.
Investors have a window of opportunity to participate in this offering, which opened on 19 October 2023, and remains open until Thursday, 2 November 2023. The NCDs will be listed on both BSE and NSE. It's worth noting that both CARE (NS:CREI) and ICRA Limited (NS:ICRA) have assigned a AA rating with a stable outlook.
Investors can subscribe the IPO with a minimum application size of INR 10,000 (equivalent to 10 NCDs) and invest in multiples of INR 1,000 (equivalent to 1 NCD) thereafter. These NCDs come with various maturity options, including 2, 3, 5, and 10 years, offering annual coupon payments. The effective yield ranges from 9.00% to 9.34% per annum, depending on the chosen category.
A minimum of 75% of the net proceeds from the Tranche I Issue will be allocated for lending, financing, and repaying or prepaying the company's existing borrowings. The remaining up to 25% will be used for general corporate purposes. It is an attractive investment opportunity for those looking to diversify their portfolios with fixed-income securities.
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