Piramal Finance board approves Rs 1,100 crore non-convertible debenture issue

Piramal Finance Limited has received board approval to issue non-convertible debentures (NCDs) worth Rs 1,100 crore, according to regulatory filings. The move will allow the non-banking financial services company to diversify its funding sources and strengthen its balance sheet.

The NCDs are proposed to be listed on the wholesale debt market segments of both the National Stock Exchange of India Ltd. (NSE) and BSE Ltd., providing institutional investors with a platform to trade the instruments. Listing on both exchanges is expected to enhance liquidity and accessibility for potential investors.

Non-convertible debentures are debt securities that remain as debt obligations and cannot be converted into equity shares. They typically offer fixed or floating interest rates, making them an attractive investment option for institutional and high-net-worth investors seeking regular income.

The issuance comes as part of Piramal Finance's broader strategy to optimize its capital structure and fund its business expansion across lending and financial services operations. The company, which operates in retail and corporate lending segments, regularly taps the capital markets to meet its funding requirements.

Detailed terms and conditions of the NCD issue, including coupon rates and maturity periods, are expected to be finalized as the company progresses with the offering process.