Carlyle Plans Rs 2,700 Cr Block Deal for Partial Exit from Piramal Pharma

American private equity major Carlyle Group is preparing to offload up to a 10 percent stake in Piramal Pharma via block trades, potentially fetching between ₹2,600 and ₹2,700 crore. The move comes four years after Carlyle acquired a 20 percent holding in the pharma firm for ₹3,523 crore ($490 million) in June 2020, at a valuation of $2.775 billion. As per stock exchange disclosures dated March 31, 2025, Carlyle holds an 18 percent stake currently, valued at approximately ₹4,836 crore at prevailing market rates. Investment bank Motilal Oswal has been mandated to execute the block trades.

Highlights:

• Carlyle to sell up to 10% in Piramal Pharma for ₹2,700 crore.

• Current stake stands at 18%, down from 20% acquired in 2020.

• Investment bank Motilal Oswal appointed for block trade execution.

• Implied valuation aligns with 2020 enterprise value of $2.775 billion.

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Piramal Pharma’s Diversified Business Supports Growth Momentum

Piramal Pharma operates across several critical verticals, including a robust Contract Development and Manufacturing Organisation (CDMO) serving global clients in North America, Europe, and Asia. Its offerings also span complex hospital generics, India’s over-the-counter health products, and a joint venture with Allergan India in ophthalmology. For FY25, the company posted a 12 percent year-on-year revenue rise to ₹9,151 crore, led by its CDMO segment—particularly from on-patent commercial manufacturing. EBITDA rose 15 percent to ₹1,580 crore, while net profit before exceptional items reached ₹91 crore, reflecting a 13 percent annual increase.

Highlights:

• Revenue for FY25 stood at ₹9,151 crore, up 12% YoY.

• CDMO led growth, supported by global on-patent projects.

• EBITDA grew 15% to ₹1,580 crore; net profit rose to ₹91 crore.

• Business includes CDMO, generics, OTC products, and ophthalmology JV.

US Expansion and Market Sentiment Reflect Mixed Investor Signals

In May 2025, Piramal Pharma announced a $90 million investment to expand two US facilities, underscoring growing demand for US-based drug manufacturing amid a global pivot toward supply chain localization. “These expansions are in response to ongoing demand from US customers,” the company said, reinforcing its bet on American innovation ecosystems. Despite operational momentum, the stock has underperformed in 2025, declining 23 percent year-to-date. On July 3, shares closed at ₹202.30 on the NSE, down 1 percent intraday, reflecting investor caution amid broader market volatility and strategic divestments.

Highlights:

• $90 million allocated to expand two US-based manufacturing units.

• Focus on US onshoring trend to support pharma innovation.

• Stock down 23% YTD; closed at ₹202.30 on July 3.

• Investor sentiment mixed despite healthy operational growth.