Can you tell me about the restructuring of Piramal group into two businesses?

Piramal Enterprises, the major entity of the Ajay Piramal group, has announced the demerger of its pharma business from the financial services business. Pharma and financial services are the two major business lines of the Piramal group. The idea of demerging pharma business into a separate entity and only retaining financial services in PEL is to simplify the corporate structure and derive better value from two specialized listed entities.

Details of the composite scheme of arrangement are awaited but the swap ratio is already announced. The pharma business will get consolidated under Piramal Pharma (PPL). IN exchange for the demerge, the shareholders of Piramal Enterprises will get 4 shares of PPL for every 1 share of PEL. They will retain their holding in PEL, which would not be ex-pharma business. PPL is likely to emerge among the largest Indian pharma plays.