All About Piramal Pharma Demerger from Piramal Enterprise stock down by 44%

 "All eyes are on Piramal Pharma Stock price once it gets listed on Stock market in December 2022"

Stock market is like a roller coaster ride, one day its up and another day its down and some times it takes only a minute from high to low, similar things happened to Piramal Enterprise limited stock on BSE and NSE the price of Piramal Enterprise limited (PEL) went down to 44%. The main reason for this is the management diction of demerging their Pharma business from its main enterprise business.

As soon as the announcement happened share price fall down to near 1000rs for PEL, Investor doesn’t have to panic for this because they will get 4 additional shares of Piramal pharma limited once the demerger will get completed. The price for Piramal pharma limited will be around 230Rs-240Rs. The official listing will be happened during last week of November or December mid-week, the exact date is not yet fixed, the record date for demerger is 1^st September 2022, which means you must have PEL shares in you demat account by 1^st September 2022 to be eligible to get 4shares of Piramal Pharma Ltd (PPL).

Promotors of PEL will be holding 44% of the stocks in PEL and 35% in PPL once the demerger happens. Carlyle which is another promotor will also hold 20% of stacks in PPL. 52% of the PEL revenue comes from the business of financial services in India which has multi layered and multi city business in India. On the other hand remaining 48% business and revenue comes from the Piramal’s pharma business which is now getting demerged from PEL to be PPL. And this will be a separate entity.

Getting demerger is beneficial because they will get tax benefit as per the new company law of Indian government. also, the divide and rule will be beneficial to their top management as the pharma companies gives many benefits to their employees. They will get ESOPS options. Piramal is owned by India’s Richest man Mukesh Ambani’s Son in law and son of Ajay Piramal Mr. Anand Piramal. Since inception of the company just like Reliance industries Piramal has made many acquisitions and made the company so wide and cluttered that they are unable to get the companies fair value in the stock market so now they are walking on the path of Separations and Demergers and will be listing new company under the name of Piramal Pharma Limited. The share price will be around 250Rs per share.

Pharma business for Piramal is working very well and making huge profits and touches the revenue almost 1billion dollar it offers almost everything that common man needs to be stay healthy. It has end to end manufacturing units across 15 countries in the world and same holds the distribution network in the 100 countries in both Metro and rural parts of the world.

With this we can say that the listing will be very crucial and all the investor are sticking their eyes on the stock price of Piramal pharma limited as it will write a new chapter in Indian pharma industry as well as in the Indian stock market.