Piramal Enterprises Limited (PEL) has announced significant modifications to the terms of its Non-Convertible Debentures (NCDs), affecting both the coupon rate structure and mandatory redemption criteria. The changes, approved by the company's Administrative Committee, apply to NCDs issued under ISINs INE140A07831 and INE140A07849.

Revised Coupon Rate Structure

The company has implemented a dynamic coupon rate system linked to its credit rating:

For Downgrades:

• 0.25% per annum increase for each notch below AA down to A+
• 1.00% per annum increase for downgrades from A+ to A

For Upgrades:

• 1.00% per annum decrease for upgrades from A to A+
• 0.25% per annum decrease for each notch from A+ to AA

This revised structure aims to align the interest rates with the company's credit risk profile, providing a balanced approach for both investors and the company.

Updated Mandatory Redemption Criteria

Piramal Enterprises has also modified its mandatory redemption event clause. The company will now be required to redeem the debentures if:

• The long-term credit rating is suspended or withdrawn
• The rating is downgraded to or below A- (four notches below the current AA rating)

This change provides additional security for investors by ensuring redemption in case of significant credit quality deterioration.

Implementation and Impact

These modifications apply to NCDs currently rated AA. For coupon rate adjustments, the most conservative available rating will be considered. The changes reflect Piramal Enterprises' proactive approach to debt management and transparency with its investors.

These revisions to the NCD terms demonstrate Piramal Enterprises' commitment to maintaining a balanced risk profile while offering fair terms to its debt investors. The step-up/step-down coupon rate mechanism provides a clear framework for interest rate adjustments based on the company's credit rating performance.

Piramal Enterprises Limited (PEL), a leading diversified Non-Banking Financial Company (NBFC), has announced a crucial board meeting scheduled for July 29, 2025. The meeting agenda includes two significant items that could impact the company's financial landscape.

Financial Results Review

The board will convene to consider and approve the unaudited financial results for the first quarter of the fiscal year 2026, ending June 30, 2025. This review will provide insights into the company's performance during the initial months of the new financial year.

Potential Fund Raising Initiative

In addition to reviewing the quarterly results, the board will evaluate a fund-raising proposal through the private placement of Non-Convertible Debentures (NCDs). This move could potentially strengthen the company's financial position and support its growth initiatives.

Trading Window Closure

In compliance with regulatory requirements, PEL has implemented a trading window closure from July 1, 2025, which will remain in effect until July 31, 2025. This measure ensures fair trading practices during the sensitive period surrounding the financial results announcement.

Investor Conference Call

Following the board meeting, Piramal Enterprises has scheduled an earnings conference call for investors and analysts on July 29, 2025, at 5:00 PM IST. This call will provide an opportunity for stakeholders to gain deeper insights into the Q1 FY2026 results and engage with the management team.

Company Overview

Piramal Enterprises Ltd. is a prominent NBFC registered with the Reserve Bank of India (RBI). The company boasts a diverse portfolio with investments and assets valued at approximately $10.00 billion. PEL's operations span across retail lending, wholesale lending, and fund-based platforms, leveraging artificial intelligence-driven technology to offer innovative financial solutions.

Retail Lending

In the retail lending sector, PEL has established a strong presence in 26 states with a network of 517 branches as of June 30, 2025. The company caters to the financing needs of underserved and unserved customers in 'Bharat' markets, offering products such as:

• Home loans
• Loans against property
• Used car loans
• Small business loans

Wholesale Lending and Partnerships

PEL's wholesale lending division provides financing to real estate developers and select corporate clients. The company has also formed strategic partnerships with leading financial institutions like CPPIB, APG, and Ivanhoe Cambridge (CDPQ) across various investment platforms.

As the financial community awaits the outcomes of this important board meeting, all eyes will be on Piramal Enterprises' Q1 FY2026 performance and any potential fundraising decisions that may shape the company's future trajectory.