Shares of Piramal Enterprises rose as much as 4.3% on Monday after US-based global investment corporate Carlyle Group Inc mentioned it’s going to acquire 20% stake in Piramal Pharma for spherical $490 million ( ₹3,700 crore).
After touching an intraday high of ₹1399.95 apiece on the BSE, the scrip closed at ₹1387.45, up 3.34% from its previous close, while the benchmark index, Sensex settled 0.6% lower at 34,961.52.
The capital lift will spice up up Piramal Pharma’s herbal and inorganic expansion plans, the Ajay Piramal-led Piramal Enterprises and Carlyle Group mentioned in a joint commentary on Saturday.
The transaction values the pharma business at an enterprise value (EV) of $2.775 billion (over ₹20,980 crore), with an upside a part of up to $360 million (over ₹2,720 crore) depending on the company’s next 12 months’s annual potency, the commentary mentioned.
This transaction is one of the largest private equity gives inside the Indian pharmaceutical sector, and is expected to close in 2020, topic to straightforward final conditions and regulatory approvals.
JP Morgan served as financial advertising guide and AZB & Partners and White & Case served as prison advisors to Carlyle.
From the beginning of the 12 months, Piramal Enterprises out of place 11% in opposition to a drop of 15% inside the benchmark index, Sensex. From March lows, Piramal Enterprises stock has more than doubled, while Sensex used to be as soon as up 36%.
For the quarter ended 31 March, Piramal Enterprises reported a consolidated loss of ₹1702 crore in opposition to a good thing about ₹455.25 for the same quarter final 12 months. Net Sales fell 2% to ₹3341 crore for the March quarter over ₹3408.52 crore for the corresponding quarter final 12 months.
Piramal Enterprises Limited (PEL) is thought of as one in every of India’s large other companies, with presence in Financial Services and Pharmaceuticals.