Carlyle to buy 20% in Piramal for Rs 3,700 crore

MUMBAI: Global private equity major The Carlyle Group will invest a 20% stake in the

pharma business

of Ajay Piramal-controlled conglomerate Piramal Enterprises Ltd (PEL) for $490 million (Rs 3,700 crore), making it one of the largest private equity deals in the pharma sector.


The transaction values PEL’s pharma business at an enterprise value of $2.8 billion, with an upside component of up to $360 million, depending on its FY21 performance.

Ajay Piramal, chairman

Piramal Enterprises Limited

, said, “This is a strategic partnership with a marquee global investor like Caryle in

Piramal Pharma

, a subsidiary of Piramal Enterprises. At a time of Covid, this is a reflection about the strength and quality of business we have. I am delighted that we are partnering with a marquee investor like Carlyle who has a global footprint in pharma space.”

The pharma business will be carved into a separate subsidiary, Piramal Pharma from the holding company, PEL. The deal is expected to close in calendar year 2020, subject to customary conditions and regulatory approvals.

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