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.
BENGALURU, Oct 7 (Reuters) – Indian conglomerate Piramal Enterprises Ltd (PEL) (PIRA.NS) said on Thursday it was demerging its pharmaceutical business and listing it as a separate entity as part of a move to simplify its corporate structure.
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.
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.
Shares of Piramal Enterprises closed 1.6% higher on Thursday.
The demerger is subject to approvals from shareholders, creditors and regulators, Piramal said.
($1 = 74.7920 Indian rupees)
Reporting by Nallur Sethuraman in Bengaluru; Editing by Krishna Chandra Eluri
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