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Piramal Enterprises Approves ₹2,000 Crore Fundraising Plan

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Synopsis:

Piramal Enterprises approved a public issuance of secured NCDs worth ₹2,000 crore to enhance financial capacity. The company reported a 238% YoY net profit jump, showcasing robust growth.

 

Piramal Enterprises Ltd (PEL) has announced its plan to raise up to ₹2,000 crore through public issuance of secured Non-Convertible Debentures (NCDs). The decision, made by the company’s Administrative Committee on December 20, 2024, aims to enhance financial flexibility and support business growth. The NCDs, with a face value of ₹1,000 each, will be issued in one or more tranches.

Also read: NTPC Green Energy Partners with Bihar for Renewable Energy Push

PIRAMAL ENTERPRISES LTD

Trade

1107.7514.05 (1.28 %)

Updated - 23 December 2024
1124.45day high
DAY HIGH
1090.30day low
DAY LOW
585097
VOLUME (BSE)

Key Takeaways:

  • Fundraising Strategy: Public issuance of secured NCDs aggregating up to ₹2,000 crore.

  • Purpose: Boost financial capacity for growth initiatives.

  • Company Performance: Strong YoY and QoQ revenue growth in Q2 FY25.

  • Impact on Piramal Share Price: The development aligns with market strategies to sustain investor confidence.

Also read: NHPC to Invest ₹5,500 Crore in Bihar for Solar, Green Hydrogen

Strong Financial Performance in Q2 FY25

Piramal Enterprises reported robust financial results for Q2 FY25, with a 238% year-on-year (YoY) increase in net profit to ₹162.97 crore. This marked significant growth from ₹48.19 crore in Q2 FY24. On a quarter-on-quarter (QoQ) basis, net profit declined 10% from ₹181.45 crore in Q1 FY25. The company’s total revenue reached ₹2,080.43 crore, a 17% YoY growth from ₹1,778.32 crore in Q2 FY24, and a 7.88% QoQ increase from ₹1,928.50 crore in Q1 FY25.

Financial Highlights of Piramal Enterprises

Metric

Q2 FY25

Q2 FY24

QoQ Change

YoY Change

Net Profit

₹162.97 crore

₹48.19 crore

-10%

+238%

Total Revenue

₹2,080.43 crore

₹1,778.32 crore

+7.88%

+17%

Growth AUM

₹62,626 crore

N/A

N/A

+45%

Retail Lending AUM

₹54,737 crore

N/A

N/A

+42%

Mortgage Disbursements

₹4,653 crore

N/A

N/A

+39%

The company’s strong performance reflects its diversified growth strategy, with a notable 45% YoY surge in Growth Assets Under Management (AUM) and a 42% rise in retail lending AUM.

Impact on Piramal Share Price

Despite positive financial results, Piramal share price fell by 2.9%, closing at ₹1,090.25 on Friday. The announcement of the ₹2,000 crore NCD issuance is expected to support the company’s growth initiatives and influence future market trends.

Piramal Enterprises’ decision to raise ₹2,000 crore through secured NCDs underscores its focus on strengthening financial capabilities to sustain growth. The company’s robust performance and diversified portfolio position it for long-term success in the NBFC sector.

Also read: NSE to Exclude 16 Securities from F&O Contracts by Feb 28

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Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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