Piramal Capital & Housing Finance Limited Secured NCD Public Tranche I - Issue Opens on July 12, Coupon Rate Upto 9.00% p.a.#

 

·         Secured NCDs of a face value of Rs. 1,000 each. Minimum Application Size: Rs 10,000 (10 NCDs) across all series collectively and in multiples of ₹1,000 (1NCD) thereafter;

·         The Tranche I Issue includes a Base Issue Size for an amount of Rs. 200 crores (“Base Issue Size”) with an option to retain oversubscription up to Rs. 800 crores aggregating up to Rs. 1,000 crores (“Tranche I Issue”) which is within the Shelf Limit

·         Total Shelf Size/Shelf Limit: Rs 2000 crores

·         Rated as CARE AA (CWD) (Under Credit Watch with Developing Implications) by Care Ratings Limited and ICRA AA with outlook (Negative) by ICRA Limited

·         Coupon rate upto 9.00% p.a.^#

·         The Tranche I Issue opens on July 12, 2021 and closes on July 23, 2021^# (with an option of early closure or extension)

·         Allotment would be on first come first serve basis

^#For further details please refer Shelf Prospectus and Tranche I Prospectus each dated June 30, 2021

Mumbai, 7 July, 2021: 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 crores with an option to retain oversubscription up to Rs 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 Interest Payment		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

 

·          *Our Company would allot the Series III NCDs, as specified in this Tranche I Prospectus to all valid Applications, wherein the Applicants have not indicated their choice of the relevant Series of NCDs.

 

·          With respect to Options where interest is to be paid on an annual basis, relevant interest will be paid on each anniversary of the Deemed Date of Allotment on the face value of the NCDs. The last interest payment under annual Options will be made at the time of redemption of the NCDs.

 

·          Subject to applicable tax deducted at source, if any

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’s 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 lakh in Fiscal 2018 (constituting 4% of our loan book) to ₹ 4,43,127 lakh 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, JM Financial Limited and Trust Investment Advisors Private Limited.

Capitalised terms not defined herein shall have the same meaning as assigned to such terms in the Shelf Prospectus and Tranche I Prospectus each dated June 30, 2021.

 

Allotments, in consultation with the Designated Stock Exchange, shall be made on date priority basis i.e. first-come first serve basis, based on the date of upload of each Application in to the electronic book with Stock Exchange, in each Portion subject to the Allocation Ratio indicated in the Tranche Prospectus

^#For further details please refer Shelf Prospectus and Tranche I Prospectus each dated June 30, 2021