Piramal Pharma Ltd, which listed its shares on the stock exchanges on Wednesday, closed down by 4.98 per cent at Rs 191.75 on the BSE.
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As part of the demerger process, four equity shares of face value of Rs 10 each fully paid up of Piramal Pharma will be issued and allotted for every one share of face value of Rs 2 held in Piramal Enterprises. “The simplification of the corporate structure will unlock greater shareholder value. PPL is well poised to be a global Indian brand in the pharmaceutical space. It has an integrated business model, niche product offerings and a global team to deliver responsible growth in the future,” said Ajay Piramal, Chairman of Piramal Group.
In June 2020, PPL signed an agreement with The Carlyle Group Inc. to invest growth equity capital for a 20% stake in Piramal Pharma. Accordingly, the pharmaceuticals business was vertically demerged from Piramal Enterprises Ltd (PEL). In October 2021, the board of directors of PEL approved the demerger of the pharmaceuticals business and simplification of the corporate structure to transform PEL from being a multi-sector conglomerate to two separate sector-focused listed entities in financial services and pharmaceuticals.
PPL includes Piramal Pharma Solutions (PPS), an integrated contract development and manufacturing organisation (CDMO), Piramal Critical Care (PCC), a complex hospital generics business and the India consumer healthcare business, selling over-the-counter (OTC) products. In addition, it has a joint venture with Allergan, a leader in ophthalmology in the Indian formulations market.
