A “return to the roots” is how Nandini Piramal describes Piramal Pharma’s listing on the BSE and the National Stock Exchange, on Wednesday. The company debuted at ₹201.80 on the BSE, and ₹200 on the NSE. However, PPL shares closed down almost 5 per cent at ₹191.75 on the BSE. and at ₹190 on the NSE from listing price.
The listing was a historic moment, PPL Chairperson Nandini Piramal told BusinessLine, as it was the first time that Group Chairman Ajay Piramal got to ring the gong (the opening bell at the BSE to announce the listing). Recounting the senior Piramal’s word’s she said, “He’s been in business for 40 something years and he’s never got to ring the gong. All our other companies were already listed.”
Last October, the board of Piramal Enterprises’ had approved the demerger of the pharmaceuticals business from the parent company, paving the way to streamline the group’s businesses. Under the demerger scheme, four fully paid-up equity shares of PPL of ₹10 each were allotted to PEL shareholders for every one fully paid-up equity share held in PEL. Shares of PEL closed at ₹825.90 on the NSE.
The Ajay Piramal-led Piramal Enterprises (in its earlier avatar as Piramal Healthcare) had sold its domestic formulations business to Abbott for an estimated ₹17,000 crore in 2010.
Future plans
Outlining PPL’s road ahead, Nandini said, there was good demand for the company’s products and services, the challenge was the volatility in exchange rates, energy prices and oil prices. “We are going to focus on how do we meet the demand of our customers. And how do we manage the volatility.”
Ajay Piramal, Chairman of the Piramal Group said of the PPL listing, that it was in line with their objective “to transform the group from a multi-sector conglomerate into two separate sector-focused listed entities. (pharma and financial services) The simplification of the corporate structure will unlock greater shareholder value.”
With revenues of ₹6,700-odd crore, Piramal Pharma’s businesses are centered on contract development and manufacturing organisation (₹3,960 crore), a complex hospital generics segment (₹2,002 crore) and consumer healthcare business (₹741 crore). “We have unique cards to play,” and the differentiated strategy would help balance the volatility, she said. The company was also investing ₹1,200 crore in existing production plants, over two years, she added. The company holds 49 percent in a joint venture with Allergan, in the ophthalmology segment.
In June 2020, The Carlyle Group Inc inked an agreement to invest growth equity capital for a 20 per cent stake in Piramal Pharma.