Piramal Enterprises surges 7%, hits 52-week high on divestment of DRG biz

The company signed a definitive agreement for the sale of DRG to Clarivate Analytics plc, a global leader in providing trusted insights and analytics, for a sale consideration of $950 million.

Shares of Piramal Enterprises (PEL) rallied 7 per cent to hit 52-week high of Rs 1,656 on the National Stock Exchange (NSE), after the company announced divestment of its Decision Resource Group (DRG) business for $950 million.

“PEL DRG Dutch HoldCo BV, a 100 per cent subsidiary of PEL and the holding company for Decision Resources Group (DRG) engaged in healthcare insights & analytics business, has signed a definitive agreement for the sale of DRG to Clarivate Analytics plc, a global leader in providing trusted insights and analytics, for a sale consideration of US $950 million,” the company said in a press release.

The sale amount includes $900 million to be received on closing and $50 million to be received at the end of 12 months from the date of closing. This transaction is subject to shareholder approval and is expected to be completed by end February, 2020, the press release said.

“Along with the ongoing equity capital raise in PEL, this transaction not only further strengthens the company’s balance sheet but also marks another step towards significantly unlocking value in future,” Ajay Piramal, Chairman, Piramal Group said.

DRG, the high-value data, analytics and insights business of the Piramal Group, specializes in enabling the world’s leading pharma, biotech and medical technology companies to achieve commercial success in complex health markets with the creation of effective patient-centric commercial strategies.

At 02:15 pm, the stock was trading 6 per cent higher at Rs 1,634 on the NSE, as compared to 0.06 per cent rise in the Nifty50 index. A combined 2.7 million equity shares changed hands on the counter on the NSE and BSE so far.