Piramal board approves demerger of its pharmaceuticals business from Piramal Enterprises

Piramal Enterprises said its board has approved a composite scheme of arrangement providing for the demerger of its pharmaceuticals business and simplification of the corporate structure to create two listed entities in financial services and pharmaceuticals.

By:Updated: Oct 08, 2021 1:04 PM
Piramal board, Piramal Enterprises, Piramal Pharma, demergerFollowing the demerger, Piramal Pharma will become one of the large pharma firms listed on NSE and BSE

Piramal board has approved the demerger of its pharmaceuticals business from Piramal Enterprises to consolidate it further under Piramal Pharma. With this move, pharmaceuticals business will get vertically demerged from Piramal Enterprises and will then be consolidated under Piramal Pharma, the company said in a regulatory filing.

Piramal Enterprises said its board has approved a composite scheme of arrangement providing for the demerger of its pharmaceuticals business and simplification of the corporate structure to create two listed entities in financial services and pharmaceuticals.

Following the demerger, Piramal Pharma will become one of the large pharma firms listed on NSE and BSE, it added.

“In consideration of the demerger, Piramal Pharma Ltd (PPL) shall issue 4 fully paid-up equity shares of PPL of ₹10 each to the shareholders of PEL for every 1 fully paid-up equity share in PEL having a face value of ₹2 each held by them, in accordance with the Share Entitlement Ratio,” Piramal Enterprises Ltd (PEL) said.

Two operating subsidiaries wholly-owned by Piramal Pharma will also be amalgamated with Piramal Pharma Ltd to further simplify the pharma corporate structure, it added.

Piramal Group chairman Ajay Piramal 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 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,” he added.

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 said.

“Piramal Pharma will be a large India-listed pharma company with proven capabilities in contract development and manufacturing, global distribution of complex hospital generics, and a large geographic footprint in the consumer products market in India,” he added.

Piramal Pharma’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, Piramal said.

 

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