The company had posted a net profit of Rs 448.17 crore in the corresponding period of previous fiscal, Piramal Enterprises said in a filing to the BSE.
Motilal Oswal is bullish on Piramal Enterprises recommended buy rating on the stock with a target price of Rs 1600 in its research report dated June 28, 2020.
The transaction values the pharma business at an enterprise value of USD 2.775 billion (over Rs 20,980 crore), with an upside component of up to USD 360 million
The company said it is looking at a range of pharma assets in India and abroad that include branded formulations, manufacturing sites, complex hospital generics and even possibly entering vaccines.
The tenure of the instrument is three-years-and-one day and the interest rate is fixed at 9 percent per annum, Piramal Enterprises said.
Carlyle might buy the stake in Piramal's pharmaceuticals business for Rs 3,500-4,000 crore
The meeting of administrative committee of the board of directors has approved the issue of secured, rated, listed, redeemable non-convertible debentures (NCDs) on private placement basis, Piramal Enterprises said in a regulatory filing.
The company has reported a loss of Rs 1,702 crore in the quarter ended March 2020.
During the quarter, Piramal Enterprises' revenue from pharmaceuticals stood at Rs 1,622.58 crore as against Rs 1,475.76 in the corresponding quarter a year ago.
The stake-sale process is aimed at raising growth capital and strengthening the Piramal group’s balance sheet.
The company in January this year announced an agreement for sale of its Decision Resources Group (DRG) business to Clarivate Analytics for USD 950 million, and had said it would use the money to reduce debt and to explore organic and inorganic growth opportunities.
Piramal Enterprises share price is currently trading at 0.9x FY21E price/consolidated BV.
DCCO of project loans for commercial real estate has been extended by a year without downgrading asset classification.
Revenue from operations also rose to Rs 3,805.67 crore for the quarter under review as against Rs 3,489.30 crore in the year-ago period.
Revenue of the company was up 9.1 percent at Rs 3,806 crore versus Rs 3,489 crore, YoY.
The pharma segment contributed Rs 4,786 crores or 36% of the group’s revenues of Rs 13215 crores in FY19.
Modi government’s biggest announcement of the corporate tax cut in September 2019 has hinted towards their intention of aggressively attracting new investments and job creation.
The proposed transaction is expected to be completed on or before February 28.
PEL had initially invested $650 million in 2012 to acquire DRG, of which $260 million was infused as equity
The company raised long-term capital of Rs 24,000 crore to pare short-term liability in the last one year.