Mumbai: Pharma major Piramal Enterprises has announced the successful completion of its Rights Issue that closed on Tuesday.
“The issue saw participation from most of its existing large institutional investors, as well as retail investors. The issue has been oversubscribed 1.14 times. The Rs. 3,650 Crore Rights Issue offered an opportunity to all its existing shareholders to participate in the capital raise” the company said in a regulatory filing.
“We are delighted to receive such a tremendous response from our existing shareholders towards the Rights Issue especially in this volatile market environment. The enthusiastic response by both retail and institutional shareholders is an affirmation of their confidence in the Company’s fundamentals, balance sheet and growth prospects” said Ajay Piramal, Chairman, Piramal Enterprises Ltd.
“Through the Rights Issue, the preferential allotment to CDPQ, the stake sale in Shriram Transport and the recent sale of Decision Resources Group, the Company is far exceeding its commitment to bring in INR 8,000-10,000 Crores of equity in FY2020. With these transactions, the Company is raising funds aggregating up to ~INR 14,500 Crores, which will further strengthen our balance sheet and allow us to target both organic as well as inorganic growth opportunities that the environment is offering” he added.