Piramal Enterprises Announces Demerger & Corporate Structure Simplification

The Board of Directors of Piramal Enterprises Limited (‘PEL’) has approved the demerger of the pharmaceuticals business and simplification of the corporate structure. Shareholders^# of PEL will get 4 (four) shares of PPL for every 1 (one) share in PEL, in addition to their existing holding in PEL. The demerger is expected to unlock significant value for PEL shareholders. Both listed entities will have a leadership position in their respective sectors. The demerger is subject to shareholders, creditors and regulatory approvals PHL Fininvest Private Limited, the non-banking financial company (NBFC) will be amalgamated with Piramal Enterprises Limited to create a large listed NBFC^*.   The merged Housing Finance company, post the DHFL acquisition, will remain a wholly-owned subsidiary of Piramal Enterprises Limited. Piramal Enterprises Limited will be one of India's large listed diversified NBFCs^*, with significant presence across both retail and wholesale financing, offering multiple retail products through a technology-driven platform. The Housing Finance company (HFC) merged with DHFL, a 100% subsidiary of PEL, will be amongst the leading HFCs in India, focused on affordable housing finance. Ajay Piramal, Chairman, Piramal Group, said, “Over the years, Piramal Enterprises has grown multi-fold with diverse businesses under one listed holding company structure. In line with our stated strategy, the Board has today approved the demerger and simplification of our corporate structure, to create two independent listed entities in Financial Services and Pharmaceuticals, with a leadership position across the business segments they operate in. It will firmly empower both entities to be future-ready and enable them to independently pursue their growth strategies with sharper focus and identity. Piramal Enterprises Limited will get transformed into a large listed diversified NBFC, focused on retail and wholesale financing, with a consolidated loan book of ~INR 65,000 Crores. Our retail lending platform will be digitally-led, that will serve the financing needs of the under-served customers in the ‘Bharat’ market. With the recent acquisition of DHFL, the wholly-owned housing finance housing subsidiary has been significantly scaled to become one of the largest HFCs of our country, focused on affordable housing finance.