NCLT okays demerger plan of Piramal Enterprises into pharma, corporate biz

"We are on track to achieve the completion of demerger and separate listing of Piramal Pharma by the third quarter of the current financial year," PEL Chairperson Ajay Piramal said.

Piramal group
Piramal Enterprises has already obtained approvals from RBI, SEBI, stock exchanges, creditors and equity shareholders.
Press Trust of India New Delhi
2 min read Last Updated : Aug 12 2022 | 10:38 PM IST

Piramal Enterprises Ltd (PEL) on Friday said the National Company Law Tribunal has approved the demerger of its pharmaceutical business and simplification of corporate structure.

With this, the company can now go ahead with its plans to have two separate listed entities -- PEL, a non-banking financial company and Piramal Pharma Ltd (PPL), the company said in a regulatory filing.

"We are on track to achieve the completion of demerger and separate listing of Piramal Pharma by the third quarter of the current financial year," PEL Chairperson Ajay Piramal said.

Last October, the PEL board approved the demerger of the pharma business and simplification of the corporate structure.

It has already obtained approvals from RBI, SEBI, stock exchanges, creditors and equity shareholders.

PEL said in July this year it had also received RBI approval for the NBFC licence. Subsequent to the demerger, PEL said it as an NBFC will have a loan book of nearly USD 9 billion, while the pharma firm will be a significant player with revenues of nearly USD 1 billion.

Under the demerger scheme, four fully paid-up equity shares of PPL of Rs 10 each would be issued to PEL shareholders for every one fully paid-up equity share in PEL with face value of Rs 2 each held by them.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :NCLTPiramal EnterprisesAjay Piramal

First Published: Aug 12 2022 | 10:38 PM IST

Next Story