InvestorQ : How do you see PEL benefiting from the Piramal Pharma deal?
Arti Chavan made post

How do you see PEL benefiting from the Piramal Pharma deal?

Answer
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Rutuja Nigam answered.
3 weeks ago


You must be aware that Piramal Enterprises Limited or PEL is the holding company of Piramal Pharma. Recently, PEL finalized the sale of 20% stake in Piramal Pharma to US based private equity fund, Carlyle for a total consideration of Rs.3524 crore.

This stake sale values Piramal Pharma at an overall valuation of $2.80 billion. But, more importantly, the proceeds from the deal will be used as growth capital for the pharma business and also help PEL to reduce its debt overall.

Piramal Pharma is an integral and indispensable part of the Piramal group. The pharma business of the Piramal Group had reported total revenues of Rs.5419 crore for FY21 and accounted for 41% of Piramal group sales. It also reported operating margins of 26%.

Piramal Pharma is predominantly into very high growth business of contract development and manufacturing operations or CDMO business. CY20 has seen big deals in the pharma space and this is a continuation of that trend.