Piramal Alternatives To Raise $1.5 Billion For Private Credit

Piramal Group unit Piramal Alternatives is planning to raise $1.5 billion for investment in high-yield companies through private credit, chief executive officer Kalpesh Kikani was quoted as saying by Bloomberg.

“The unit of Piramal Group, which is controlled by billionaire Ajay Piramal, has four existing private credit funds that together have raised $4 billion, Kikani said. Their returns have exceeded 20% on an annualised basis, he said.

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The four funds include India Resurgence Fund in partnership with Bain Capital and the Performing Credit Fund where the Caisse de dépôt et placement du Quebec is an anchor investor.

“Deployments should be through our four existing funds that can offer private source of capital. The company is sounding out international investors for funds be it for transformation, turnaround, growth capital or special situations.” said Kikani.

India’s economy is forecasted to grow 5.9% this year and will reportedly outpace China and average of other Asian countries' economies, as per International Monetary Fund (IMF).

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“The need for private capital has suddenly surged amid India’s fast expanding economy,” further added.

Another Piramal Group unit Piramal Pharma, last week, got green signal from SEBI to raise up to Rs 1,050 crore through rights issue of shares. The pharma company submitted the draft papers with the regulator in March and obtained an observation letter from SEBI on July 12.

The shares of Piramal Enterprises are trading green, up by 0.20% at Rs 993.75 per piece, against its previous close at Rs 991.80.