Piramal Enterprises shares rose more than 4 per cent on Monday after the Mumbai-based conglomerate said US-based investment firm Carlyle Group will purchase a 20 per cent stake in its pharmaceutical unit for around $490 million (Rs 3,706.36 crore at $1 = Rs 75.64). On the BSE, Piramal Enterprises shares rose to as high as Rs 1,399.95 apiece on the BSE during the session, marking a 4.27 per cent jump compared to its previous close of Rs 1,342.60. In a regulatory filing on Saturday, Piramal Enterprises had said it would integrate its pharmaceuticals businesses into its wholly-owned subsidiary Piramal Pharma, which will use the capital raised through the deal to accelerate its organic and inorganic growth plans.
Piramal Enterprises had said the deal valued its pharmaceuticals business at an enterprise value of $2,775 million with an upside component of up to $360 million, which would depend on the company's performance in financial year 2020-21.
The final amount of equity investment will depend on the net debt, exchange rate and performance against the pre-agreed conditions at the time of closing of the deal.
As part of the deal, Piramal Pharma will include end-to-end contract development and manufacturing business Piramal Pharma Solutions, hospital generics business Piramal Critical Care, the group's consumer healthcare business, and Piramal Enterprises' investment in its joint venture with Allergan India.
Carlyle has invested more than $2.5 billion in India as of March 31, 2020, the statement added.
Piramal Enterprises shares ended 3.34 per cent higher at Rs 1,387.45 apiece on the BSE, outperforming the benchmark Sensex index which fell 0.60 per cent.