Ajay Piramal-backed Piramal Capital & Housing Finance Ltd (PCHFL) is looking to raise up to ₹3,000 crore in its second bond sale in a week. The housing finance company will issue secured non-convertible debentures with a base issue size of ₹2,000 crore and a green shoe option of ₹1,000 crore.
PCHFL, with a rating of AA, raised ₹2,000 crore from a group of public sector banks in a bond sale last week.
These bonds are being offered for 9.25% with a five-year maturity. The bidding date is 18 March and the pay-in date 19 March.
The back-to-back domestic bond issuances by Piramal comes after the Reserve Bank of India gave PCHFL the go-ahead to acquire bankrupt mortgage financier Dewan Housing Finance Corp Ltd (DHFL). Lenders to the troubled mortgage financier are now in the process of approaching the National Company Law Tribunal (NCLT) with the resolution proposal for a final approval. Piramal had offered ₹37,250 crore as part of the resolution plan, which includes a higher upfront cash payment. The plan received 94% votes of the committee of creditors.
PCHFL’s standalone net worth stood at ₹10,195 crore as of 31 March 2020, compared to ₹9,274 crore a year ago. The company reported a capital adequacy ratio of 34.89% on 31 March 2020.
It has a diversified resource profile with bank loans accounting for 65% of its borrowings and long-term capital market instruments accounting for 19%. Nearly 70% of the loan book is concentrated in real estate.