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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.
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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
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.
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.
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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