Piramal Enterprises rights issue oversubscribed 1.14 times

New Delhi: Piramal Enterprises on Wednesday said its nearly Rs 3,650 crore rights issue, which closed Tuesday, was oversubscribed about 1.14 times.

"The issue saw participation from most of the company's existing large institutional investors as well as retail investors," Piramal Enterprises said in a statement.

"We are delighted to receive such a tremendous response from our existing shareholders towards the rights issue especially in this volatile market environment," Piramal Enterprises chairman Ajay Piramal said.

The approximately Rs 3,650 crore rights issue offered an opportunity to all existing shareholders to participate in the capital raise.

Through the rights issue, preferential allotment to CDPQ, stake sale in Shriram Transport and the recent sale of Decision Resources Group, the company is far exceeding its commitment to bring in Rs 8,000-10,000 crore of equity in 2019-20, Piramal said.

"With these transactions, the company is raising funds aggregating up to around Rs 14,500 crore, which will further strengthen our balance sheet and allow us to target both organic as well as inorganic growth opportunities that the environment is offering," he added.