Stock Report

Piramal Enterprises Limited updates on impact of RBI notification on AIFs

Posted On : 2023-12-21 10:32:19( TIMEZONE : IST )

The Reserve Bank of India has released a notification dated December 19, 2023 bearing No. RBI/2023-24/90 DOR.STR.REC.58/21.04.048/2023-24 on "Investments in Alternative Investment Funds (AIFs)".

Piramal Enterprises Limited being a Regulated Entity (RE) wishes to provide the following details regarding the exposure of the Company ('PEL') and its subsidiaries in AIFs:

1. As of November 30, 2023, the value of investments by PEL and Piramal Capital & Housing Finance Limited in AIF units was Rs. 3,817 crores.

a. Rs. 653 crores of this pertains to Funds that have no exposure to any debtor companies of PEL.

b. Of the remaining Rs. 3,164 crores, Rs. 1,737 crores worth of downstream investments have been made by the AIF into 3 entities that are (or were in the last 12 months) debtor companies of PEL (consolidated).

c. Taking a conservative view of the regulatory intent, PEL intends to adjust the entire Rs. 3,164 crores in our financial statements through capital funds or provisions. We are engaging with relevant stakeholders to finalize the details.

2. PEL has a consolidated net worth of Rs. 28,710 crores (September end 2023), and a capital adequacy of 31%.

We remain confident of full recovery of the underlying downstream investments in the impacted AIF units.

1. PEL (consolidated) has received Rs. 905 crores so far as repayment of interest and principal on these units.

2. Receivables on this Fund accrue to PEL commensurate with our investment holding.

Shares of Piramal Enterprises Limited was last trading in BSE at Rs. 960.95 as compared to the previous close of Rs. 962.35. The total number of shares traded during the day was 80328 in over 3680 trades.

The stock hit an intraday high of Rs. 974.00 and intraday low of 948.05. The net turnover during the day was Rs. 77491706.00.