Mumbai: Piramal Healthcare said on Friday it planned to enter the financial services business, inclduing lending and fund management for infrastructure and allied sectors.
The firm plans to acquire Indiareit Fund Advisors, a real estate Private Equity Fund focused on the Indian market, for Rs 110 crore, it said in a statement to the Bombay Stock Exchange.
It will also acquire Indiareit Investment Management Company, who are managers to Real Estate Private Equity Funds investing in India, for Rs 115 crore.
The company also plans to start two non-banking financial services companies with a corpus of Rs 1000 crore and will not invest in its own real estate companies, Chairman Ajay Piramal told reporters.
Piramal, who also controls Piramal Glass , Piramal Life Sciences and IndiaReit Fund Advisors, was in the news last year for selling Piramal Healthcare’s domestic formulations business to Abbott Laboratories for $3.72 billion.
Later, the firm also sold its diagnostic services business to Super Religare Laboratories — owned by billionaire brothers Malvinder and Shivinder Singh who control Fortis Healthcare (India) — for Rs 600 crore.
The firm also posted a 31% rise in consolidated net profit to Rs 202 crore on Friday and declared a special dividend of Rs 6 in addition of the usual Rs 6 .
A Reuters’ poll of 18 brokerages had forecast a consolidated quarterly net profit of 965.67 million rupees on sales of Rs 498 crore for Piramal Healthcare.
Separately, group firm Piramal Life Sciences said on Friday its board has approved demerger of its New Chemical Entity (NCE) Research Unit to Piramal Healthcare.
“The development projects from pipeline would need strong financial support going forward. Hence the board has approved the demerger,” it said in a statement.
“The risk profile of NCE research and development activity has reduced considerably and presents a good investment opportunity to utilize some of the proceeds from the sale of domestic formulations business,” it added.
Piramal Healthcare can better utilise its manufacturing infrastructure and can also get 200 percent weighted average deduction both on operational expense and capital expenditure on R&D, it said.
Ahead of the announcement, shares of Piramal Life Sciences fell 5% to Rs 98.9 in a strong Mumbai market while Piramal Healthcare ended mostly unchanged at Rs 458.9.