Piramal Enterprises Surges 15% In Just Three Days

Shares of Piramal Enterprises surged as much as 5 per cent today to Rs 1,854, hitting fresh 52-week high after the company announced acquisition of a US-based drug manufacturing firm.

Piramal Enterprises, which will be part of NSE's Nifty Next 50 basket from September 30, has rallied 15 per cent in three days. The Nifty Next 50 rejig was announced on Friday. 

In a statement to the BSE aftermarket hours yesterday, Piramal Enterprises said that its US  subsidiary has entered into an agreement to acquire 100 per cent stake in Ash Stevens in an all-cash deal for up to $53 million. 

Ash Stevens is a focused on development and manufacturing of high potency active pharmaceutical ingredients (APIs), which are substances used in the manufacture of drugs. The US-based company primarily operates from a FDA-approved commercial manufacturing facility located in Michigan.

Ash Stevens had revenue of $18.3 million in FY15. The transaction is expected to be completed by the end of this month. 

Piramal Enterprises said the acquisition will add niche potent molecule manufacturing capabilities to its pharma solutions business. 

Led by billionaire Ajay Piramal, Piramal Enterprises has presence in industries like healthcare, financial services, healthcare information management, glass packaging and real estate.

Piramal Enterprises has strongly outperformed the benchmark index in the past six months, surging over 90 per cent. The company had reported robust June quarter numbers, with net profit surging 32 per cent to Rs 231 crore on strong sales growth. 

Shares of Piramal Enterprises ended 4 per cent higher at Rs 1,844 as compared to a 0.20 per cent fall in Nifty50 index.