PI Industries announced on June 23, 2026, that its wholly-owned subsidiary, PI Health Sciences Limited (PIHS), will convert its Optionally Fully Convertible Debentures (OFCDs) into equity shares. This conversion, amounting to ₹10,000,000,000/-, will result in PIHS issuing 72,46,37,681 equity shares to PI Industries at a fair value of ₹13.80/- per share. The transaction strengthens PIHS’s balance sheet without impacting PI Industries’ ownership.
Debt-to-Equity Conversion at Subsidiary Level
PI Industries Limited has formally approved the conversion of Optionally Fully Convertible Debentures (OFCDs) held by its wholly-owned subsidiary, PI Health Sciences Limited (PIHS), into equity shares. This strategic move was decided by the Board of Directors of PI Industries on June 23, 2026.
Key Transaction Details
- Debenture Value: The conversion involves OFCDs aggregating to ₹10,000,000,000/- (Rupees Ten Thousand Million Only).
- Conversion Ratio: PIHS will issue 72,46,37,681 fully paid-up equity shares of face value ₹10.00/- each.
- Valuation: The equity shares will be allotted at a fair value of ₹13.80/- per share, based on a report from an independent registered valuer.
- Subsidiary Details: PI Health Sciences Limited operates in the Pharma – Contract Research Development and Manufacturing Organisation (CRDMO) sector and is a wholly-owned subsidiary of PI Industries. Its paid-up share capital as of March 31, 2026, was ₹4,40,99,99,460/-, and its standalone turnover was ₹580.49 million.
Impact and Rationale
This transaction represents the exercise of PI Industries’ contractual right to convert its investment in its subsidiary. The conversion is being undertaken in accordance with the terms of issuance of the OFCDs. It is expected to strengthen the consolidated balance sheet of PI Industries and its subsidiaries. Importantly, the transaction does not involve any cash consideration or share swap by PI Industries and will not result in any change in its ownership or control of PIHS. PIHS will continue to be a wholly owned subsidiary post-conversion.
Regulatory Compliance
The intimation is provided in compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The information required under Regulation 30 of the SEBI Listing Regulations has been disclosed and is enclosed as Annexure A to the disclosure.
Conclusion
The conversion of these debentures into equity shares is a routine financial exercise aimed at restructuring the subsidiary’s capital structure. PI Industries continues its commitment to transparent disclosure and robust corporate governance in its operations.
Source: BSE
