InvestorQ : Is it true that Piramal group is looking to sell a stake in Piramal Glass?
Niti Shenoi made post

Is it true that Piramal group is looking to sell a stake in Piramal Glass?

ishika Banerjee answered.
6 months ago

This has been under discussion for some time now. It is just that now even Bain Capital has joined the race to acquire a controlling stake in Piramal Glass. This was originally called Gujarat Glass which was then taken over by the Piramal group and renamed as Piramal Glass.

Apparently, Bain Capital has made an offer worth $790 million for the company, which is more than what Blackstone had offered. Piramal group is seeking a valuation in the vicinity of around $1 billion in enterprise value. Since Blackstone’s offer is valid till November 04, Bain will have to make a binding offer before that.

Piramal Glass or PGPL has five manufacturing units. Of these two each are in India and the US and one is in Sri Lanka, with a total production capacity of 1410 tonnes per day. This deal will mark another stake divestment by Piramal group which for some time has been looking at shoring up its capital base of pharma and financials by hiving off non-core businesses.

The onset of the pandemic came as a godsend for Piramal Glass as it led to a rise in demand for the global packaging industry across segments. Most manufacturers of vials and syringes have started scaling up their manufacturing capacity anticipating surge in demand for the vaccine. It is a potential $6 billion market.