Piramal Enterprises gets Rs 1,502 cr-tax notice, shares decline 3%; details

Shares of Non-Banking Financial Company (NBFC) Piramal Enterprises dropped 2.60 per cent to day's low of Rs 849.90 per share on the BSE during intra-day trade on Monday, March 3, 2025.  The fall in the company's share price follows the news that the company has received an order for tax ascertained as short-paid or not paid, along with interest and a penalty amounting to Rs 1,502 crores, from the office of the Deputy Commissioner of State Tax, Maharashtra.

 

"The order primarily relates to the slump sale of the ‘Business Undertaking’ of the Pharma business by the company to Piramal Pharma Limited in the financial year 2021, along with the transfer of its subsidiary companies for an aggregate consideration of Rs 4,487 crores," the company said in a regulatory filing on the BSE.

 

Make smarter market moves with The Smart Investor. Daily insights on buzzing stocks and actionable information to guide your investment decisions delivered to your inbox.

Subscribe

 

The Department, via its order, has contended that this is not a slump sale but an itemized sale and, thus, has levied a GST of 18 per cent on the entire sale consideration, including the consideration for the sale of investments, which are outside the scope of GST.

 

"The company will take appropriate steps in its best interest and reasonably expects to have a favorable outcome of having the order set aside," said Piramal Enterprises.

 

Piramal Enterprises (PEL) is the flagship company of the Piramal Group, a diversified Indian conglomerate with a global presence. The company operates as a Non-Banking Financial Company (NBFC) with businesses in retail and wholesale lending, alternative funds, and life insurance. PEL also has a presence in the pharmaceutical industry with end-to-end manufacturing capabilities and a global distribution network.

 

As of March 3, 2025, Piramal Enterprises' market capitalisation stands at Rs 19,548.92 crore. The company is a constituent of the BSE 500 index.

 

Piramal Enterprises shares hit their 52-week high of Rs 1,275.40 per share on December 12, 2024, while they fell to their 52-week low of Rs 736.60 on June 4, 2024.

 

Piramal Enterprises shares have dropped around 18 per cent in the last six months and nearly 10 per cent in the last one year.

 

The company's shares, however, have recorded losses. As of 12:47 PM on Monday, Piramal Enterprises shares were trading at Rs 873.15 apiece, up marginally 0.06 per cent from the previous close of Rs 872.60 on the BSE.

 

A combined total of nearly 0.37 million equity shares of Piramal Enterprises, estimated to be worth around Rs 32.41 crore, have changed hands on the BSE and the National Stock Exchange (NSE) today.

 

Meanwhile, the benchmark equity indices were trading flat on Monday, March 3. The BSE Sensex was down by 18 points at 73,179 levels, while the Nifty50 traded 0.07 per cent higher at 22,140 levels.