Piramal Pharma concludes 20 percent stake sale to Carlyle for Rs 3523.40 crore

New Delhi: Piramal Enterprises-arm Piramal Pharma has completed the sale of 20 percent stake in the company for Rs 3,523.40 crore to US-based global investment firm Carlyle Group Inc.

Piramal Pharma has received Rs 3,523.40 crore from CA Alchemy Investments, an affiliated entity of CAP V Mauritius Ltd, an investment fund managed and advised by affiliated entities of The Carlyle Group Inc, the companies said in a joint statement.

The transaction values the Pharma Business at an enterprise value of USD 2,775 million (over Rs 20,300 crore) with an upside component of up to USD 360 million (over Rs 2,630 crore) depending on the company''s FY21 performance, it added.

This transaction is one of the largest private equity deals in the Indian pharmaceutical sector. It provides Piramal Pharma Ltd (PPL) growth capital that enables it to invest in accelerated business growth through both organic and inorganic opportunities, the statement said.

"We are pleased to announce the closure of the transaction for Carlyle''s growth investment in Piramal Pharma....With this completion, we are now excited about the enhanced opportunities ahead and look forward to leveraging Carlyle''s deep expertise and global strengths to bolster our growth plans," Piramal Enterprises Executive Director Nandini Piramal said.

This fresh growth investment into Piramal''s pharma business will be used as growth capital for the pharma businesses to expand capacity across PPL''s sites as well as to tap attractive acquisition opportunities within and outside India, the statement said. In the interim, the proceeds from this capital raise will also enable further strengthening of the company''s balance sheet through deleveraging in the near term, it added.

"The completion of this transaction cements our important partnership with Piramal, and enables us to start building on the company''s solid market position and scale in each of its core businesses," Carlyle Asia Partners advisory team MD Neeraj Bharadwaj said.

Read also: CCI approves acquisition of 20 percent stake in Piramal Pharma by Carlyle Group