Piramal Enterprises share price trades post-split ahead of record date Investors need to know

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Piramal Enterprises Split Latest Update: Piramal Enterprises Limited (PEL) share price traded prior to the record date on Tuesday. The stock gained nearly 9% to touch the day’s high of Rs 1,141% on the intraday BSE on heavy volumes.

Earlier in October 2021, the company’s board approved the splitting of Piramal Ent and Piramal Pharma into two separate entities. The first to manage financial services activities and the second to have a pharmaceutical company.

At market close, shares of PEL jumped more than 1% to 1,062.75 rupees per share on BSE. The counter opened at the ex-split price of Rs 1,050 apiece on BSE.

The record date for the split of Piramal Enterprises is 1 September 2022 and the company will issue 4 equity shares of Rs 10 each of Piramal Pharma for every equity share of Rs 2 each to the shareholders of Piramal Enterprises Limited.

Piramal Enterprises will have a financial services business, including retail and wholesale lending, while Piramal Pharma, which will go public after the split, would have a pharmaceutical and CDMO business, according to Nupur Jainkunia, research analyst at Zee Business. .

The pharmaceutical entity will be listed over the next 3-4 quarters of the current fiscal year, the analyst said.

On the book value of 1.3/1.4 times, Piramal Enterprises share price stands at Rs 1415 per share from the 24th financial year and Piramal Pharma share price is down amounts to 915 rupees per share on 17 times the EV/EBITDA on average after taking into account 20%. holding discount, Zee Business analyst

The total value of the share price stands at Rs 2,330 per share, which is about 18-20% upside from the current market price, according to a research analyst.

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