American investment giant Carlyle Group is planning to sell up to a 10 percent stake in Piramal Pharma in block trades, which could see the private equity firm earn around Rs 2,600-2,700 crore, sources have told Moneycontrol.
Carlyle has engaged investment bank Motilal Oswal to facilitate the block trades, the sources said.
Carlyle picked up a 20 percent stake in Piramal Pharma for Rs 3,523 crore (approximately $490 million) in June 2020. The investment valued the pharma company at an enterprise value of $2.775 billion.
As of March 31, Carlyle held an 18 percent stake in Piramal Pharma, stock exchange data shows. The stake is worth 4,836 crore at the current market price.
Carlyle and Motilal Oswal declined to comment on Moneycontrol’s queries.
Piramal Pharma’s business comprises multiple verticals such as contract development and manufacturing organisation (CDMO) servicing clients in North America, Europe and Asia, complex hospital generics, over‑the‑counter patient healthcare products in India and a joint venture with Allergan India, engaged in ophthalmology.
Piramal Pharma reported a 12 percent year-on-year growth in revenue at Rs 9,151 crore in FY25, driven primarily by CDMO business, especially from on-patent commercial manufacturing.
EBITDA grew by 15 percent to Rs 1,580 crore, while the company’s net profit (before exceptional items) grew to Rs 91 crore, up 13 percent from the previous fiscal.
In May, the company announced plans to invest $90 million towards expanding two of its US facilities.
“These expansions are in response to ongoing demand from US customers, in support of the trend towards US onshoring of drug supply, and line with Piramal Pharma’s overall belief in the value and benefits of US-based innovation,” the company said in a statement.
On July 3, the Piramal Pharma stock ended at Rs 202.30 on the National Stock Exchange, down a percent from the previous close. The stock has lost 23 percent this year.
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