Piramal Enterprises Ltd (PEL), in its board meeting held today, has approved demerger of its pharma business Piramal Pharma Ltd (PPL) via composite scheme of arrangement, the company said in a filing today.
Two operating subsidiaries (wholly-owned by Piramal Pharma Limited) will also be amalgamated with PPL, to further simplify the pharma corporate structure.
It has also approved the amalgamation of PHL Fininvest with PEL, that will create a listed non-banking financial services entity. The merged housing finance company, post DHFL acquisition, will remain a 100% subsidiary of Piramal Enterprises.
Piramal said the investors will get four equity shares of face and paid-up value of ₹10 in PPL for every one share held in PEL.
Post the merger, PPL will become one of the largest pharma companies listed on NSE and BSE.
Piramal said the proposed demerger will facilitate pursuit of scale with more focused management and flexibility as well as liquidity for shareholders (following the listing of the shares of PPL pursuant to the Scheme) and will also insulate and de-risk both the businesses from each other and allow potential investors and other stakeholders the option of being associated with the business of their choice.
PPL offers a portfolio of differentiated pharma products and services through end-to-end manufacturing capabilities across 15 global facilities and a global distribution network over 100 countries.
It also offers end-to-end development and manufacturing solutions through a globally integrated network of facilities across the drug life cycle to innovator and generic companies.
The complex hospital product portfolio includes inhalation anaesthetics, intrathecal therapies for spasticity and pain management, injectable pain and anaesthetics, injectable anti-infectives, and other therapies.
The Board has also given nod to amalgamate PHL Fininvest Private Limited, the non-banking financial company (NBFC) with PEL to create a large listed NBFC.
The merged Housing Finance company, post the DHFL acquisition, will remain a wholly-owned subsidiary of PEL.
On Thursday, Piramal stock is up nearly 2.59% at ₹2,915.80 in afternoon trade on NSE.
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Piramal approves demerger of pharma business to unlock value for shareholders - Mint
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