InvestorQ : Is it true that the Piramal group is selling its stake in Piramal Glass?
Aditi Sharma made post

Is it true that the Piramal group is selling its stake in Piramal Glass?

Mahima Roy answered.
7 months ago

The Piramal Group is looking to hive off its stake in Piramal Glass and monetized to use the amount to reduce the debt of the Piramal Group. PEL had run up huge debts in the last few years on its financial sector venture and real estate lending activities.

Blackstone and the Partners group are said to be in talks to acquire a stake in Piramal Glass, part of the Ajay Piramal group. Piramal Glass was formerly known as Gujarat Glass and the name had been changed after the acquisition by the Piramal group.

According to preliminary indications, Ajay Piramal was seeking a valuation of $1 billion for Piramal Glass and the buyers interested in picking a controlling stake in Piramal Glass include marquee global investment names like Blackstone and Partners group.

Both the funds are looking to buy a controlling stake in the company so that they can exercise more influence on the board level decisions of the company. Piramal Enterprises has been looking for opportunities to monetize its stake in some of the group companies.

Piramal Glass has an installed manufacturing capacity of 1475 tonnes per day and is into glass packaging with factories in India, the US and Sri Lanka. The demand for solid packaging has attracted interested after the new hygiene norms triggered by COVID-19.