Piramal Finance Allocates 82.94 Lakh Warrants to Promoter Entity for ₹1,750 Crore

Piramal Finance allocates 82.94 lakh warrants to its promoter entity Nithyam Realty Private Limited as part of its ₹1,750.03 crore preferential allocation which has got the nod of its shareholders last month. 

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The allocation is done after clearance from its Committee of Directors on October 5, having obtained clearance from the board, shareholders and the two stock exchanges before that. 

Nithyam Realty has made an upfront payment of ₹437.51 crore at the time of issuance of the warrants, constituting 25% of the total consideration. 

Nithyam Realty to Get 82.94 Lakh Warrants 

The preferential allotment shall be of 82,94,000 warrants aggregating to a total consideration of ₹1,750.03 crore. 

The issue price is ₹2,110 per warrant. 

Each warrant shall be convertible into one fully paid up equity share of ₹2 face value of Piramal Finance Ltd, subject to the terms of the issue and the rules/regulations. 

The ₹437.51 crore paid by the company is the first tranche of the 25% consideration on account of the warrants. 

Allotment Follows Shareholder and Exchange Approvals 

The warrant issue has moved through several stages over the past few weeks. 

Piramal Finance’s board first approved the proposed preferential issue on August 24. Shareholders subsequently cleared it through a special resolution at an Extraordinary General Meeting held on September 19. 

The National Stock Exchange and BSE granted their in-principle approvals on September 29. 

With these approvals in place, the Committee of Directors met on October 5 and approved the actual allotment of the warrants to Nithyam Realty. 

Promoter Group to Infuse ₹1,750 Crore 

The transaction represents a proposed capital infusion of ₹1,750.03 crore by a promoter-group entity into Piramal Finance once the warrants are fully paid and exercised according to their terms. 

At this stage, ₹437.51 crore has been received by the company. 

The distinction is important: the entire ₹1,750.03 crore has not been received upfront. The October 5 disclosure records the allotment of warrants and receipt of 25% of their aggregate consideration. 

The filing does not provide a fresh announcement on how the proceeds will be deployed. 

For Piramal Finance, the latest disclosure marks the completion of the warrant-allotment stage of a capital-raising proposal that began with board approval in August and subsequently received shareholder and stock-exchange clearances.