The Board of Directors of Piramal Enterprises, at its meeting held today, approved a composite plan of arrangement providing for the spin-off of the pharmaceutical business of PEL and the simplification of the corporate structure to create two entities listed companies focused on the financial and pharmaceutical services industry, the company notified in a statement.
Speaking in this regard, Ajay Piramal, Chairman of Piramal Group, said, “Over the years, Piramal Enterprises has multiplied with various businesses under a single listed holding company structure. In line with our stated strategy, the Board of Directors today approved the demerger and simplification of our corporate structure, to create two independent listed entities in financial services and pharmaceuticals, with a leadership position in the segments of activity in which they operate. entities to be future-ready and enable them to independently pursue their growth strategies with a clearer focus and identity.
The statement also said, “Piramal Enterprises will be transformed into a large diversified listed NBFC, focused on retail and wholesale financing, with a consolidated loan portfolio of approximately Rs 65,000 crores. Our retail lending platform will be digitally led, which will meet the financing needs of underserved customers in the “Bharat” market. With the recent acquisition of DHFL, the wholly owned housing finance subsidiary has been significantly scaled to become one of our nation’s largest HFCs, focused on affordable housing finance.
Piramal Pharma will be a large listed pharmaceutical company in India with proven capabilities in development and contract manufacturing, global distribution of complex hospital generics and a large geographical footprint in the consumer products market in India. PPL’s contract development and manufacturing (CDMO) business is one of the top three in India and 13th globally. PPL’s Complex Hospital Generics and India Consumer Healthcare businesses are well positioned with differentiated products and business models, the statement added.