Piramal Enterprises to demerge into two separate Listed Entities in Financial Services and Pharmaceuticals

The Board of Directors of Piramal Enterprises Limited ('PEL', NSE: PEL, BSE: 500302), in their meeting held today, approved a composite scheme of arrangement providing for the demerger of the pharmaceuticals business from PEL and simplification of the corporate structure to create two industry-focused listed entities in Financial Services and Pharmaceuticals.

The shareholders of PEL will get 4 (four) shares of PPL for every 1 (one) share in PEL, in addition to their existing holding in PEL and the demerger is expected to unlock significant value for PEL shareholders. The demerger is subject to shareholders, creditors and regulatory approvals.

Mr. Ajay Piramal, Chairman, Piramal Group, said, "Over the years, Piramal Enterprises has grown multi-fold with diverse businesses under one listed holding company structure. In line with our stated strategy, the Board has today approved the demerger and simplification of our corporate structure, to create two independent listed entities in Financial Services and Pharmaceuticals, with a leadership position across the business segments they operate in. It will firmly empower both entities to be future-ready and enable them to independently pursue their growth strategies with sharper focus and identity.

Piramal Enterprises Limited will get transformed into a large listed diversified NBFC, focused on retail and wholesale financing, with a consolidated loan book of ~INR 65,000 Crores. Our retail lending platform will be digitally-led, that will serve the financing needs of the under-served customers in the 'Bharat' market. With the recent acquisition of DHFL, the wholly-owned housing finance housing subsidiary has been significantly scaled to become one of the largest HFCs of our country, focused on affordable housing finance.

Piramal Pharma Limited will be a large India-listed pharma company with proven capabilities in Contract Development & Manufacturing, global distribution of complex hospital generics, and a large geographic footprint in the consumer products market in India. PPL's Contract Development and Manufacturing (CDMO) business is one of the top three in India and the 13th largest globally. PPL's Complex Hospital Generics and India Consumer Healthcare businesses are well positioned with differentiated products and business models.

Going forward, in line with our philosophy of 'Doing Well and Doing Good', both the listed entities will continue to work towards creating value for all our stakeholders."

Shares of Piramal Enterprises Limited was last trading in BSE at Rs. 2841.90 as compared to the previous close of Rs. 2922.90. The total number of shares traded during the day was 75427 in over 7418 trades.

The stock hit an intraday high of Rs. 2942.00 and intraday low of 2830.00. The net turnover during the day was Rs. 217456028.00.

Source : Equity Bulls

Keywords

PiramalEnterprises INE140A01024 PEL Demerger FinancialServices Pharma @PiramalGroup