Piramal Enterprises in its regulatory filing to the stock exchanges on August 12 said the National Company Law Tribunal (NCLT) approved the demerger of Piramal Enterprises' (PEL) Pharma business and the simplification of the company's corporate structure.
It said that with the order issued, Piramal Enterprises Limited (NBFC) and Piramal Pharma Limited will be two distinct listed businesses.
Piramal Enterprises further mentioned that its Board in October 2021 gave its approval to the demerger of the pharmaceutical industry and the corporate structure's streamlining. It said that after the Board's approval, the company received approval for the composite scheme of arrangement from the RBI, SEBI, stock exchanges, and our creditors and equity shareholders. And then, the RBI approved PEL's application for an NBFC licence in July 2022.
The firm also stated that the demerged firms' performance is projected to improve over the next several years since they will be more focused and able to pursue quicker expansion.
In exchange for the demerger, PEL shareholders will receive 4 shares of PPL in addition to their current holding of PEL for every 1 share of PEL.
Chairperson of Piramal Enterprises Ltd, Ajay Piramal said, “The approval from the Honourable NCLT on the demerger of our Pharma business and the simplification of the corporate structure is a significant milestone. We are on track to achieve the completion of the demerger and separate listing of Piramal Pharma by the third quarter of the current financial year. The demerger creates one of India’s large listed diversified NBFCs, with a loan book of nearly $9 Billion. It will have a significant presence across both retail and wholesale financing, leveraging technology at its core.""The pharma company will be a large listed entity in the pharmaceutical sector with revenues of nearly $1 Billion. It offers a portfolio of differentiated products and services through end-to-end manufacturing capabilities across 15 global facilities and a global distribution network of over 100 countries,” Piramal added.