Demerger could fetch higher valuations for Piramal Pharma

The company is focussing on growth and is scouting for more acquisitions

The demerger and consolidation of the pharma business of Piramal Enterprises under Piramal Pharma (PPL) is a positive move for shareholders both from the valuation and growth perspectives. Given the holding company structure, analysts were valuing the pharma segment at a 20 per cent discount.

With a separate listed entity, the estimated enterprise value of PPL could move up from the Rs 31,500 crore that analysts at Motilal Oswal Research had pegged for the pharma business. A year ago the Carlyle Group had picked up a 20 per cent stake in the pharma business valuing the company at $2.8 billion