According to Piramal Enterprises, the company will issue 4 shares of Piramal Pharma at Rs 10 to the shareholders of Piramal Enterprises Limited for 1 share of Rs 2 each.
Piramal Enterprises Split Update: Shares of Piramal Enterprises will trade on Tuesday, August 30, ahead of the demerger date. The effective date of the merger of Piramal Enterprises is September 1. Investing in the company’s shares can be a long-term post-spin investment, said Zee Business editor Anil Singhvi.
Piramal Enterprises Ltd (PEL) has approved the spin-off of its pharmaceutical business Piramal Pharma Ltd (PPL) in its board meeting through a comprehensive management plan, the company said in a filing.
According to Piramal Enterprises, the company will issue 4 shares of Piramal Pharma each worth Rs 10 each to the shareholders of Piramal Enterprises Limited.
After the demerger, the founders will own 44% of Piramal Ant and about 35% of Piramal Pharma, while global investment firm Carlyle will own 20% of Piramal Pharma. Similarly, Piramal Ant and Piramal Pharma shareholders hold 56% and 45% shares respectively.
Piramal said the proposed demerger would facilitate focus and flexibility as well as increase in size with shareholders (after listing under PPL’s share plan) and cash for both companies. And will also reduce the risk. Enable others and potential investors and stakeholders to engage with the company of your choice.
Piramal Enterprises will have a financial services business, including retail and wholesale lending, while Piramal Pharma, which will go public after the demerger, will have a pharma and CDMO, according to a Zee Business research analyst. Will be.
All derivative contracts for the stock will expire on Monday and new contracts will be issued from Tuesday, the research analyst said, adding that he listed the pharmaceutical company for the next 3-4 quarters of the current fiscal. will go
At 1.3/1.4 times book value, Piramal Enterprises shares are trading at Rs 1,415 per share in FY24e and Piramal Pharma shares are trading at Rs 915 per share at 17 times EV/EBITDA noted at an average of 20%. Holding Discount, said Nupur Jankonia, analyst at Zee Business.
According to the research analyst, the total share price is Rs 2,330 per share, which is around 18-19% upside from the current market price. Shares of Pirmal Ant closed at Rs 1,940 per share, up nearly 2 percent on the exchanges.