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MUMBAI : Billionaire Ajay Piramal-led Piramal Enterprises Ltd on Thursday announced a major restructuring of its business with plans to demerge its financial services and pharmaceuticals businesses into two separate listed entities.

The pharmaceuticals business will get vertically demerged from Piramal Enterprises and consolidated under Piramal Pharma Ltd (PPL), the group said in a statement. Two operating subsidiaries will also be amalgamated with Piramal Pharma, to further simplify the pharma corporate structure.

PHL Fininvest Pvt Ltd, the non-banking financial company (NBFC) will be amalgamated with Piramal Enterprises Ltd to create a large listed NBFC, the group said. The merged housing finance company, post the DHFL acquisition, will remain a wholly-owned subsidiary of Piramal Enterprises.

Shareholders of Piramal Enterprises (PEL) will get four shares of PPL for every one share in PEL, in addition to their existing holding in PEL.

The demerger is expected to unlock significant value for PEL shareholders, the group said.

Ajay Piramal, chairman, Piramal Group, said, “Over the years, Piramal Enterprises has grown multi-fold with diverse businesses under one listed holding company structure. In line with our stated strategy, the Board has today approved the demerger and simplification of our corporate structure, to create two independent listed entities in Financial Services and Pharmaceuticals, with a leadership position across the business segments they operate in. It will firmly empower both entities to be future-ready and enable them to independently pursue their growth strategies with sharper focus and identity."

Piramal Enterprises will get transformed into a large listed diversified NBFC, focused on retail and wholesale financing, with a consolidated loan book of Rs65,000 crore. Piramal Pharma will be a large India-listed pharma company with proven capabilities in contract development & manufacturing, global distribution of complex hospital generics, and a large geographic footprint in the consumer products market in India.

The demerger is subject to shareholders, creditors and regulatory approvals

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