Piramal Enterprises down 5 percent on demerger plan of pharma business
Published On: Friday, October 8, 2021 | By: Team KnowMyStock
Shares of Piramal Enterprises were down 5 per cent to Rs 2,727.80 on the BSE in Friday's intra-day trade on profit booking after the company's board approved the demerger of the pharmaceuticals business and simplification of the corporate structure."The board of directors of Piramal Enterprises on October 7, approved a composite scheme of arrangement providing for the demerger of the pharmaceuticals business from Piramal Enterprises and simplification of the corporate structure to create two industry-focused listed entities in financial services and pharmaceuticals," company said in its release. While the financial services, including the recently acquired DHFL, will remain under Piramal Enterprise Ltd (PEL), the pharmaceutical operations will be carved out into a separate entity called Piramal Pharma Limited (PPL). Existing shareholders of PEL will get four shares of PPL for one share of PEL.
"The demerger is expected to unlock significant value for PEL shareholders. Both listed entities to have a leadership position in their respective sectors. The demerger is subject to shareholders, creditors and regulatory approvals," PEL said in a statement.Piramal Enterprises will transform into a listed diversified NBFC, focussing on retail and wholesale financing, with a consolidated loan book of ₹65,000 crore. Piramal Pharma will comprise contract development and manufacturing, global distribution of complex hospital generics and consumer products market in India.
Tags: PEL demerger Pharmabusiness
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