The shares of Piramal Pharma Limited made a debut in the Indian stock exchanges on October 19th, 2022. The shares were listed at Rs 201.8 apiece on the BSE and Rs 200 per share on the NSE.
At 11.50 on Wednesday, the stock had declined by 4.9 per cent and was trading at Rs 191 levels on BSE.
The Pharma business of Piramal enterprises has been demerged from the group to form a newly listed company. Last week, Piramal Pharma received approval from the Securities and Exchange Board of India (Sebi) to list shares on the domestic stock exchanges.
As per the demerger scheme, the shareholders of Piramal enterprises ltd (PEL) will receive four fully paid-up equity shares of the newly listed Piramal Pharma of Rs 10 each for every one fully paid-up equity share in PEL with a face value of Rs 2 each held by them.
The company was demerged from its parent in August this year as a part of the strategy to simplify the company’s corporate structure. Further, the company also said that this will enable the pharma company to independently pursue its growth strategies with a sharper focus and identity.
Piramal Pharma, notably, includes Piramal Pharma Solutions (PPS), Piramal Critical Care (PCC), and the India Consumer Healthcare business of PEL, which sells over-the-counter products.
The company has a differentiated business model which includes Contract development and manufacturing (CDMO) which accounted for 59 per cent of their FY22 sales, along with complex hospital generics and India Consumer products which accounted for 30 per cent and 11 per cent of their total sales in FY22, respectively.
Domestic brokerage Motilal Oswal has assigned a fair value of Rs 210 to the stock. “While Piramal Pharma has been facing business headwinds over the past 15-18 months, we expect resource hiring to revive the CDMO business and the easing of Covid-related restrictions to drive the CHG segment,” it said.
Written by Anoushka Roy
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