CDPQ invests US $250M in Piramal Enterprises

Caisse de dépôt et placement du Québec (CDPQ) has invested US $250 million, in the form of Compulsory Convertible Debentures, in Piramal Enterprises Limited (NSE: PEL, BSE: 500302), part of US $770 million total fundraising that also includes a US $520 million rights offering.

The investment builds upon an existing partnership between Piramal Enterprises and CDPQ, which began with an initial investment in 2017 and includes a residential real estate co-investement platform with CDPQ’s real estate subsidiary Ivanhoé Cambridge which committed US $250 million.

Led by Chairman Ajay Piramal, Piramal Enterprises Limited (PEL) is one of India’s largest diversified companies, with a presence in Financial Services, Pharmaceuticals and Healthcare Insights & Analytics. PEL’s consolidated revenues were approximately US $1.9 billion in FY2019, with about 40% of revenues generated from outside India.

Piramal family controls 46% of PEL.

photo credit: PEL

News Release

CDPQ and Piramal Enterprises strengthen partnership

Finance Mumbai and Montréal, October 25, 2019

Caisse de dépôt et placement du Québec (CDPQ) is announcing an investment in Piramal Enterprises Limited (Piramal Enterprises), a leading Indian financial and industrial group active in financial services, pharmaceutical development and manufacturing, and healthcare information management. CDPQ will acquire US$250 million in convertible debentures from Piramal Enterprises.

“We are delighted to deepen our partnership with Piramal Enterprises, a company whose value creation approach aligns well with CDPQ’s long-term objectives and perspective as a global institutional investor,” said Anita M. George, Executive Vice-President and Head of Strategic Partnerships, Growth Markets at CDPQ. “This transaction further demonstrates CDPQ’s commitment to invest in different sectors of India’s economy.”

This transaction strengthens an existing partnership between Piramal Enterprises and CDPQ, which began with an initial investment in 2017 and includes a residential real estate coinvestement platform with CDPQ’s real estate subsidiary Ivanhoé Cambridge.

À PROPOS DE LA CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC

Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at June 30, 2019, it held CA$326.7 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.
ABOUT PIRAMAL ENTERPRISES LTD

Piramal Enterprises Limited (PEL) is one of India’s largest diversified companies, with a presence in Financial Services, Pharmaceuticals and Healthcare Insights & Analytics. PEL’s consolidated revenues were ~US$1.9 billion in FY2019, with around ~40% of revenues generated from outside India.

In Financial Services, Piramal Capital & Housing Finance Limited (PCHFL), wholly owned subsidiary of Piramal Enterprises Limited (the flagship company of Piramal Group), is registered as a housing finance company with National Housing Bank (NHB) and engaged in various financial services businesses. It provides both wholesale and retail funding opportunities across sectors. In real estate, the platform provides housing finance and other financing solutions across the entire capital stack such as structured debt, construction finance, flexi lease rental discounting etc. The wholesale business in non-real estate sector includes separate verticals- Corporate Finance (CFG) and Emerging Corporate Lending (ECL). CFG provides customized funding solutions to companies across sectors such as infrastructure, renewable energy, roads, industrials, auto components etc. while ECL focuses on lending towards, Small and Medium Enterprises (SMEs). PCHFL’s group companies provides customized strategies for institutional and retail investors such as Mumbai Redevelopment Fund and Apartment Fund (through Piramal Fund Management) and strategic partnerships with leading global pension funds such as CPPIB, APG and Ivanhoe Cambridge. The division has also launched a Distressed Asset Investing platform with Bain Capital Credit – IndiaRF that will invest in equity and/or debt in assets across sectors (other than real estate) to drive restructuring with active participation in turnaround. PEL also has equity investments in Shriram Group, a leading financial conglomerate in India.

In Pharma, through end-to-end manufacturing capabilities across 13 global facilities and a large global distribution network to over 100 countries, PEL sells a portfolio of niche differentiated pharma products and provides an entire pool of pharma services (including in the areas of injectable, HPAPI etc.). The Company is also strengthening its presence in the Consumer Products segment in India. PEL’s Healthcare Insights & Analytics business is a premier provider of healthcare analytics, data & insight products and consulting services to the world’s leading pharma, biotech and medical technology companies, enabling them to make informed business decisions.

PEL is listed on the BSE Limited and the National Stock Exchange of India Limited in India.

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For more information

Media contact +1 514 847-5493 medias@cdpq.com

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.