Mumbai, Oct 7 (SocialNews.XYZ) Piramal Enterprises Limited (PEL) has proposed to demerge its pharmaceutical business as part of simplification of the corporate structure.
The board of directors of PEL on Thursday approved a composite scheme of arrangement providing for this demerger that will create two industry-focused listed entities -- in financial services and pharmaceuticals.
As part of the plan, the pharmaceutical business will get demerged from PEL and consolidated in Piramal Pharma Limited (PPL). Hemmo Pharma Private Limited (focused on peptide APIs development and manufacturing capabilities) and Convergence Chemical Private Limited (set up for development, manufacturing and selling speciality fluorochemicals) will get amalgamated with PPL to create a consolidated listed pharma entity.
In consideration of the demerger, PPL shall issue four fully paid-up equity shares of PPL of Rs 10 each to the shareholders of PEL for every one fully paid-up equity share in PEL having a face value of Rs 2 each held by them, in accordance with the share entitlement ratio.
The amalgamation of PHL Fininvest Private Limited with PEL will create a listed non-banking financial services (NBFC) entity. The merged housing finance company (HFC) post DHFL acquisition will remain a 100 per cent subsidiary of PEL.
Through this demerger and simplification of the corporate structure, the shareholders of PEL will directly own shares in both the listed entities, without any cross-holdings and minority stakes.
Source: IANS
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