Piramal Capital & Housing Finance raises 900 crore
Ajay Piramal’s NBFC has raised Rs 1,400 crore from a clutch of banks — Union Bank of India, IndusInd Bank and Bank of India — to service its existing debt and for lending, according to people familiar with the development. Piramal Capital & Housing Finance has raised Rs 900 crore from two public sector banks — Union Bank of India and Bank of India — at 8.9% for five years and Rs 500 crore from IndusInd Bank for one year at 9% to meet the obligations. In the last one year, the company has raised long-term capital of Rs 24,000 crore to pare short-term liability and adjust the mismatch. It has raised equity from funds such as CDPQ — a fresh capital infusion of Rs 1,750 crore in December 2019. Meanwhile, promoters are increasing investment in the company and have underwritten 90% of the rights issue. An email query sent to the company remained unanswered till press time. The three banks could not be reached for a comment.
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