Piramal Enterprises gets CCI nod for CPDQ's subscription to company debentures
New Delhi [India], Dec 11 (ANI): The Competition Commission of India (CCI) has approved subscription of Piramal Enterprises' compulsory convertible debentures by Canadian institutional investor Caisse de dpt et placement du Qubec (CDPQ).
ANI
Dec 11, 2019 11:58 IST
New Delhi [India], Dec 11 (ANI): The Competition Commission of India (CCI) has approved subscription of Piramal Enterprises' compulsory convertible debentures by Canadian institutional investor Caisse de dpt et placement du Qubec (CDPQ).
Upon conversion, equity shareholding of CDPQ in Piramal Enterprises will increase from 3.68 per cent to 8.99 per cent, the CCI said in a statement.
CDPQ, an institutional investor, is a Canadian institutional fund that manages and serves more than 40 depositors which comprise public and private pension and insurance funds in Quebec.
In October, the board of directors at Piramal Enterprises had approved raising of Rs 5,400 crore through a rights issue and preferential allotment of compulsory convertible debentures.
The rights issue of Rs 3,650 crore at Rs 1,300 per share is intended to give an opportunity to all its existing shareholders to participate in the capital raise at an attractive price, the company had said.
In addition, the company plans to raise Rs 1,750 crore through the preferential allotment of CCDs at a conversion price of Rs 1,510 per share to CDPQ.
The preferential allotment will take place later this year and the rights issue is expected to be completed by February 2020.
The funds are expected to strengthen the company's balance sheet and aid it in consolidation across financial services, pharmaceuticals and information management businesses.
(ANI)
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