The stock rose close to 9 per cent during the early trading session.
The investors who bought the shares on Monday or before would have seen a more than 46 per cent fall in the stock value on Tuesday but this price is adjusted after the demerger of the pharma business.
Piramal will get its pharmaceutical business listed on the bourses as a separate legal entity. It will be named Piramal Pharma (PPL) with a separate ticker and the listing is expected by the end of the third quarter of this fiscal year.
Shares of Piramal Enterprises, which now only constitutes the financial services business, listed at Rs 1,050 and surged another 9 per cent to Rs 1141.75, before trading at Rs 1,125.60 at 10.25 am.
Piramal Enterprises secured the approval of the National Company Law Tribunal (NCLT) for the demerger of its pharmaceutical business and the simplification of its corporate structure, the company said in a regulatory filing.
The record date for the demerger of the pharma business from the finance business has been set as September 1 and stock traded ex-demerger on Tuesday as the markets will remain shut on Wednesday on the account Ganesh Chaturthi.
Investors will be allotted four shares of Piramal Pharma (PPL) for every one share of Piramal Enterprises (PEL) held in their demat account. However, investors buying shares today will not be considered eligible for the shares of the new business.
After the demerger, promoters will hold a 44 per cent stake in Piramal Enterprises, whereas the remaining 56 per cent stake will remain with the public and other shareholders.
Similarly, promoters will own 35 per cent in Piramal Pharma, the upcoming listed entity, whereas Carlyle will hold 20 per cent equity shares. The remaining 35 per cent equity will be owned by other shareholders of the new business.
Piramal’s financial business contributed about 52 per cent of revenue of the company in the financial year 2021-22, whereas the remaining 48 per cent of revenue came from the pharmaceutical business.
In July this year, PEL said it had also received RBI approval for the NBFC licence. Subsequent to the demerger, PEL said as an NBFC it will have a loan book of $9 billion, while the pharma firm will be a significant player with revenues of $1 billion.
The company has reported an 8 per cent decline in the consolidated net profit to Rs 496.09 crore despite a 22 per cent increase in net sales to Rs 3,548.37 crore in the quarter ended on June 30, 2022, on a year-on-year comparison.