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The board of directors at Piramal Enterprises Ltd. (PEL) on Thursday approved the issuance of non-convertible debentures (NCDs) on a private placement basis to raise Rs 250 crore.

The shares of the company surged more than 4 percent on Thursday after the company informed the stock exchanges about the Board's approval.

PEL will issue NCDs up to Rs 50 crore along with an option to retain oversubscription of up to Rs 200 crore, aggregating to a total of Rs 250 crore on a private placement basis. Tenure of the instrument will be 17 months and 23 days with the maturity date being May 24, 2024.

The non-convertible debentures are proposed to be listed on debt segments and capital market segments of NSE and BSE, while NSE is the designated stock exchange.

Piramal Enterprises is undergoing phase 3 of its transformation exercise with a focus on scaling up the overall loan book, leveraging DHFL's platform to cross-sell and increasing retail loans share to two-thirds of the business volume.

Last year, the company merged with DHFL, which was one of the largest home loan companies in the country. In September, Piramal Group’s Chairman Ajay Piramal told CNBC-TV18 that the company aims to split the lending business into two-thirds retail and one-third wholesale in the next 5 years from its current 60 percent lending to wholesale and 40 percent to retail.

Ajay Piramal also revealed that the company would be targeting retail customers in tier-II and tier-III cities who are not easily reached by banks and other large NBFCs.

Shares of Piramal Enterprises are trading at Rs 859.35, up 4.18 percent.

(Edited by : Rukmani Krishna)