Piramal Pharma Locked In 5% Lower Circuit On Listing After Demerger

Last week, Piramal Pharma received an approval from the Securities and Exchange Board of India (Sebi) to list shares on domestic stock exchanges

Outlook Business Team

Updated on: 19 October 2022 2:55 pm

Piramal Pharma shares, which got listed as a separate entity after getting demerged from Piramal Enterprises, were locked in 5 per cent lower circuit at Rs 192 on the BSE.

Last week, Piramal Pharma received an approval from the Securities and Exchange Board of India (Sebi) to list shares on domestic stock exchanges.

Piramal Pharma was demerged from Piramal Enterprises Ltd (PEL) as a part of the simplification of the corporate structure after it got approval from the National Company Law Tribunal (NCLT).

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Piramal Pharma received a letter from Sebi... the company expects that its shares will be listed on the Indian equity stock exchanges -- BSE and NSE -- next week, the company said in a statement last week.

The company offers a portfolio of differentiated products and services through end-to-end manufacturing capabilities across 15 global facilities and a global distribution network in over 100 countries. The company includes Piramal Pharma Solutions (PPS), an integrated Contract Development and Manufacturing Organization; Piramal Critical Care (PCC), a Complex Hospital Generics business, and the India Consumer Healthcare business selling over-the-counter products.

Its Contract Development and Manufacturing Organization (CDMO) business registered a 10 per cent compounded annual growth rate (CAGR) over FY17-22, led by focussed efforts across emerging bio-pharma and big pharma. Moreover, high entry barriers along with a shift to a more integrated network drove the growth in the CDMO business, brokerage firm Motilal Oswal said in a report.

It expects continued investments to the tune of $157 million to expand capacity and attract customers through differentiated offerings. Moreover, there is a healthy pipeline of developmental projects across clinical phases.

“We expect CDMO revenues to exhibit a CAGR of 10 per cent over FY22-24 to Rs 480 crore, led by a strong pipeline of molecule with high visibility of revenues over the next four to five years,” the Mumbai-based brokerage said.

Going forward, we expect the growth to be led by a strong product pipeline in niche areas with unique characteristics and continuing vertical integration for revenue growth and margin expansion, Motilal Oswal added.