Piramal Pharma Ltd, which listed its shares on stock exchanges on Wednesday, closed down 4.98 percent at Rs 191.75 on the BSE.
As part of the spin-off process, four fully paid capital shares of Rs 10 each par value of Piramal Pharma will be issued and allocated for each share of Piramal Enterprises of Rs 2 par value. “Simplifying the corporate structure will unlock greater value for shareholders. 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 drive responsible growth for the future,” said Ajay Piramal, President of the Piramal Group.
In June 2020, PPL entered into an agreement with The Carlyle Group Inc. to invest growth equity for a 20% stake in Piramal Pharma. Consequently, the pharmaceuticals business was vertically spun off from Piramal Enterprises Ltd (PEL). In October 2021, PEL’s board of directors approved the spin-off of the pharmaceutical business and the simplification of the corporate structure to transform PEL from a multi-sector conglomerate to two separate listed entities focused on the financial services and pharmaceuticals sector.
PPL includes Piramal Pharma Solutions (PPS), an integrated contract development and manufacturing organization (CDMO), Piramal Critical Care (PCC), a complex hospital generics business, and India’s consumer healthcare business, which sells products over-the-counter (OTC). In addition, it has a joint venture with Allergan, the ophthalmology leader in the Indian formulation market.