Piramal Capital & Housing Finance Limited Secured NCD Public Tranche I – Issue Opens on July 12
Jairam Sridharan Chief Executive Officer Piramal Retail Finance
Chennai: Wholly owned subsidiary of Piramal Enterprises Ltd, Piramal Capital & Housing Finance Limited (PCHFL), a non-deposit taking housing finance company, into wholesale and retail funding, has announced the issue of secured, rated, listed, redeemable, non-convertible debentures of the face value of Rs. 1,000 each (“Secured NCDs”). The Tranche 1 Issue opens on July 12, 2021 and closes on July 23, 2021(with an option of early closure or extension).
The Tranche I Issue has a base issue size of Rs. 200 croreswith an option to retain oversubscription up toRs 800 crores, aggregating up to Rs. 1,000 crores (“Tranche 1 Issue”). The NCDs are proposed to be listed on BSE and NSE (collectively, “Stock Exchanges”) with BSE as the Designated Stock Exchange for the Issue. The NCDs have been rated CARE AA(CWD) (Under Credit Watch with Developing Implications)by CARE Ratings Ltd and ICRA (AA) with outlook (negative) by ICRA Ltd
The terms of each series of NCDs, offered under Tranche I Issue are set out below:
| Series | I | II | III* | IV | V | ||||
| Interest Type | Fixed | Fixed | Fixed | Fixed | Fixed | ||||
| Frequency of Interest Payment | Annual | Cumulative | Annual | Annual | Annual | ||||
| Type of NCDs | Secured | ||||||||
| Minimum Application | ₹10,000 (10 NCDs) across all Series | ||||||||
| In Multiples of thereafter (₹) | ₹ 1,000/- (1 NCD) | ||||||||
| Face Value/ Issue Price of NCDs (₹/NCD) | ₹ 1,000 | ||||||||
| Tenor from Deemed Date of Allotment | 26 months | 26 months | 36 months | 60 months | 120 months | ||||
| Coupon (% per annum) for NCD Holders in Category I & II | 8.10% | NA | 8.25% | 8.50% | 8.75% | ||||
| Coupon (% per annum) for NCD Holders in Category III & IV | 8.35% | NA | 8.50% | 8.75% | 9.00% | ||||
| Effective Yield (% per annum) for NCD Holders in Category
I & II |
8.12% | 8.10% | 8.24% | 8.50% | 8.74% | ||||
| Effective Yield (% per annum) for NCD Holders in Category
III & IV |
8.37% | 8.35% | 8.49% | 8.75% | 8.99% | ||||
| Mode of InterestPayment | Through various mode available | ||||||||
| Amount (₹ / NCD) on Maturity for NCD Holders in Category
I & II |
₹1,000 | ₹1184.20 | ₹1,000 | ₹1,000 | ₹1,000 | ||||
| Amount (₹ / NCD) on Maturity for NCD Holders in Category
III & IV |
₹1,000 | ₹1190.15 | ₹1,000 | ₹1,000 | ₹1,000 | ||||
| Put and Call Option | Not Applicable | ||||||||
PCHFL is a wholly owned subsidiary of Piramal Enterprises Limited (“PEL”), which is the flagship company of the Piramal Group, registered as a non-deposit taking housing finance company with the National Housing Bank (NHB). Our journey in financial services started in 2010, with the setup of Piramal Finance Ltd (PFL) and over the years, we have built a lending platform to serve the needs of corporate and individual customers. In terms of retail housing finance, we have been offering housing loans to retail customers – in addition to other retail lending products. We have also entered into business partnerships with Fintech and other consumer focused entities of strategic significance to optimize our vision of multi-product digital lending. We have pivoted our business strategy from focusing on large ticket affluent home loans to the prime segment of affordable housing loans and mass affluent housing loans. Our retail housing portfolio has grown from 1,32,618 lakhs in Fiscal 2018 (constituting 4% of our loan book) to 4,43,127 lakhs as of Fiscal 2021 (constituting 13.7% of our loan book) in a short span of three years.
The company as on March 31, 2020 had a CRAR of 34.89%, higher than other tier 1 and tier 2 players in the housing finance segment(Source: CRISIL Report) and currently stands at 32.30% for FY21.
The Lead Managers to the issue are A. K. Capital Services Limited, Edelweiss Financial Services Limited, J M Financial Limited and Trust Investment Advisors Private Limited