Piramal Enterprises spurts after selling DRG biz for $950 mln

Piramal Enterprises jumps 5.37% to Rs 1630 after the company said its board approved the divestment of stake in the healthcare insights and analytics business.

Piramal Enterprises (PEL) on Friday said its wholly-owned subsidiary, PEL DRG Dutch HoldCo BV, will sell its healthcare insights and analytics business to NYSE-listed Clarivate Analytics Plc for $950 million. The deal includes $900 million on closing and $50 million to be received at the end of 12 months thereon.

The transaction is subject to shareholder approval and is expected to be completed by end of next month, PEL said in a release.

PEL DRG Dutch HoldCo BV is the holding company for Decision Resources Group (DRG)engaged in healthcare insights & analytics business.

PEL had invested $650 million in 2012 to acquire DRG, of which $260 million was equity. It has realized 2.3 times its initial equity investment in rupee terms.

The revenue from the healthcare insights and analytics business was Rs 1,330.74 crores for the financial year ended 31 March 2019, PEL said.

Ajay Piramal, chairman, Piramal Group 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.

Shares of PEL extended their winning run to fourth consecutive session. The stock has surged 13.49% in just four trading sessions from its previous closing low of Rs 1436.30 on 13 January 2020.

PEL is one of India's largest diversified companies, with a presence in financial services, pharmaceuticals and healthcare insights & analytics.

On consolidated basis, PEL's net profit jumped 17.3% to Rs 564.25 crore on 14.6% rise in net sales to Rs 3,603.56 crore in Q2 September 2019 over Q2 September 2019.

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