Shares of Piramal Enterprises surged over 3 per cent in opening trade on Thursday after the company announced the acquisition of Hemmo Pharmaceuticals Private Limited by Piramal Pharma Limited, subsidiary of the company.
Boosted by the development, Piramal Enterprises share price gained as much as 3.28 per cent to hit a high of Rs 1,809.55 on the BSE. The stock opened higher at Rs 1,799 against previous close price of Rs 1,752. The market cap of the diversified global business conglomerate rose to Rs 40,360.09 crore. On the volume front, 18,000 shares have changed hands over the counter as compared to two-week average volume of 67,000 shares.
In a similar trend, Piramal Enterprises shares were trading 2.22 per cent higher at Rs 1,792 on the National Stock Exchange (NSE). The stock hit a high and low of Rs 1,809.85 and Rs 1,766.55, respectively, on the NSE.
Piramal Enterprises in an exchange filing on Wednesday said Piramal Pharma, a subsidiary of the company, has entered into an agreement to acquire a 100 per cent stake in Hemmo Pharmaceuticals for an upfront consideration of Rs 775 crore and earn-outs linked to the achievement of milestones.
Following the acquisition, Hemmo Pharmaceuticals would become a wholly-owned subsidiary of Piramal Pharma Ltd (PPL).
This acquisition marks PPL's contract development and manufacturing organisation Piramal Pharma Solutions'' (PPS'') foray into the development and manufacturing of peptide APIs (Active Pharmaceutical Ingredient), a capability that complements PPS'' existing service offering, Piramal Pharma said.
With the addition of Hemmo's capabilities, PPS will gain access to the growing peptide API market and enhance its ability to offer integrated services to its customers globally, it added.
"Hemmo has demonstrated excellence and a great quality track record with a differentiated and hard to replicate capability. Once welcomed into the PPL family, it will be another example of a distinctive offering to attract and delight customers", Piramal Pharma Ltd Chairperson Nandini Piramal said.
This is the third pharma acquisition this fiscal year, and yet another example of the implementation of our profitable growth strategy, she added.
Meanwhile, the BSE Sensex was at 49683.43, up by 174.28 points or by 0.35 per cent, and the NSE Nifty was quoting at 14768.65, up by 77.95 points or by 0.53 per cent.
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