Piramal Enterprises tumbles over 16% in three sessions

Piramal Enterprises fell 4.64% to Rs 1,330.45, extending recent steep losses.

Shares of Piramal Enterprises (PEL) tumbled 16.66% to its current market price of Rs 1,330.45 in three trading session from its previous closing high of Rs 1,596.60 on 4 October 2019.

PEL announced during market hours today, 10 October 2019, that it filed complaint with Securities and Exchange Board of India (Sebi) regarding misleading rumors about the company's financial services business.

The firm said total borrowings in the financial services business stands at about Rs 39,000 crore currently, which is about 75% of the loan book. Financial services business received total inflows (including borrowings, asset inflows) of about Rs 45,000 crore in the past one year, which comprises of about 85% of the loan book as of September 2018.

It disbursed about Rs 19,000 crore in the past one year, of which around Rs 5,000 crore was disbursed towards housing finance (retail). The company repaid debt obligations of around Rs 30,000 crore in the past one year, of which about Rs 5,300 crore was repaid in Q2 FY2020.

Promoter holding in PEL remains at 46%-highest among sizeable financial services institutions in India.

Meanwhile, the S&P BSE Sensex was down 291 points or 0.76% to 37,886.57.

On the BSE, 1.11 lakh shares were traded in the PEL counter so far compared with average daily volumes of 1.37 lakh shares in the past two weeks. The stock hit an intraday high of Rs 1,399.20. It hit an intraday low of Rs 1,315.50, which is also a 52-week low for the counter. The stock hit a 52-week high of Rs 2,795.95 on 1 April 2019.

PEL's consolidated net profit surged 125.9% to Rs 456.93 crore on 20.8% jump in net sales to Rs 3,506.25 crore in Q1 June 2019 compared with Q1 June 2018.

PEL is engaged in the business of pharmaceuticals, including research and development, financial services and information management through its subsidiaries.

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