Piramal's pharma business will now be demerged and consolidated under its unit Piramal Pharma. Shareholders of Piramal will get four shares of Piramal Pharma for every share they hold in the conglomerate.
Piramal will also merge its shadow lending unit PHL Fininvest with itself to create a large non-banking financial company, with a focus on retail and wholesale financing and a consolidated loan book of 650 billion rupees ($8.69 billion), the company said in an exchange filing https://archives.nseindia.com/corporate/PEL_07102021140017_SE_Intimation_07102021_signed.pdf.
The moves will enable the entities to independently pursue their growth strategies with sharper focus and identity, said Ajay Piramal, chairman of the Piramal Group.
The demerger is subject to approvals from shareholders, creditors and regulators, Piramal said.
Shares of Piramal Enterprises closed 1.6% higher on Thursday.
($1 = 74.7920 Indian rupees)
(Reporting by Nallur Sethuraman in Bengaluru; Editing by Krishna Chandra Eluri)