Piramal Enterprises NSE -43.04% shares will trade ex-spinoff on Tuesday, and any investor who wishes to benefit from the company’s demerger plans must purchase shares on Monday alone.
Piramal Enterprises announced in a regulatory filing that the National Company Law Tribunal (NCLT) has approved the demerger of its pharmaceutical sector and the streamlining of its corporate structure.
With the permission, Piramal Enterprises (PEL) can move through with its ambitions to have two independent listed firms — PEL, a non-banking financial company, and Piramal Pharma (PPL).
Piramal Enterprises intends to separate its pharmaceutical business and list it separately on the BSE and the National Stock Exchange (NSE).
The record date for the demerger of the pharma business from the financial industry has been set for September 1, 2022, and the stock will trade ex-demerger on Tuesday because markets will be closed on Wednesday for Ganesh Chaturthi.
In addition, all derivative contracts on the stock will expire today, with new ones being issued on Tuesday. The pharmaceutical firm, on the other hand, will be listed in the third quarter of the current fiscal year.
For every one share of Piramal Enterprises (PEL) held in a demat account, investors will receive four shares of Piramal Pharma (PPL). If any investor wishes to take advantage of the demerge, he or she should purchase the stock on Monday in order to receive delivery of shares.
Following the demerger, promoters will own 44% of Piramal Enterprises, while the other 56% would be owned by the general public and other shareholders.
Similarly, promoters will own 35% of Piramal Pharma, the incoming publicly traded firm, while Carlyle will own 20%. Other stockholders in the new company will possess the remaining 35% of the shares.
Piramal’s financial division produced around 52% of the company’s revenue in fiscal year 2021-22, with the pharmaceutical business accounting for the remaining 48%.
PEL announced in July that it has got RBI clearance for the NBFC license. Following the demerger, PEL stated that it will have a loan book of $9 billion as an NBFC, while the pharma firm will be a key participant with $1 billion in revenue.
On a year-on-year basis, the company reported an 8% drop in consolidated net profit to Rs 496.09 crore despite a 22% increase in net sales to Rs 3,548.37 crore in the quarter ended June 30, 2022.
Piramal Enterprises’ stock closed Monday at Rs 1,953.60, down around 1%, and today on the 30th August 2022 the stock opened at 1055.05. PPL which is PEL’s subsidiary will credit their 1:4 ratio shares in the Demat holding on 1st Sept.