Shares of Piramal Enterprises gained over 2 per cent to hit the day’s high of Rs 922 on December 27 after its subsidiary acquired Piramal Consumer Products Private Ltd (PCPPL) is acquiring Piramal Tower located at Peninsula Corporate Park, Lower Parel, Mumbai for Rs 875 crore.
“…we wish to inform you that Piramal Consumer Products Private Limited (PCPPL), a wholly-owned subsidiary of the company, has agreed to enter into an agreement with AASAN Corporate Solutions Private Limited (ACSPL), a promoter group company, for the acquisition of Piramal Tower (Office Premises) located at Peninsula Corporate Park, Lower Parel, Mumbai, for a consideration of Rs 875 crore,” Piramal Enterprises said in a regulatory filing
So far this year, the stock of this diversified non-banking lender has surged over 10 per cent as against an 18 per cent rally in the benchmark Sensex. It had scaled a 52-week high of Rs 1,140 per share on September 11.
“This transaction will allow Piramal Enterprises and its subsidiaries to fulfil their future office space needs,” the filing read. The subsidiary’s turnover for FY21, FY22 and FY23 was Rs 71.27 lakh, Rs 151.35 lakh, and Rs 70.42 lakh, respectively.
The company intends to utilise a certain portion of these office premises and expects to capitalise on space as and when it becomes available to meet the rising operating demands.
Analysts at JM Financial shared a ‘buy’ rating for Piramal Enterprises, with a target price of Rs 1,250 apiece. “We believe Piramal Enterprises should be able to deliver average core return on equity (RoE) of 0.7 per cent over FY24-25. Strategic changes at key leadership positions, strengthening of risk standards, and meaningful process improvements should ensure continued delivery on growth and profitability,” the brokerage firm said.
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