Piramal Enterprises rallies 8% on restructuring; Q4 results disappoint

NEW DELHI: Piramal Enterprises Ltd rallied as much as 8.12 per cent in trade on Tuesday after the Ajay Piramal owned company said it will merge 3 of its subsidiaries with the parent company.

The Board of Directors of the company at its meeting held on May 05, 2014, has decided the merger of subsidiaries. Although the company posted a consolidated net loss of Rs 311.35 crore for the fourth quarter ended March 31, 2014, due to higher finance costs.

At 09:35 a.m.; Piramal Enterprises was trading 6.4 per cent higher at Rs 589.50. It hit a low of Rs 573 and a high of Rs 599.10 in trade today.

In a separate filing, the company said its board has also approved to merge subsidiaries --PHL Capital Pvt Ltd, Piramal Pharmaceutical Development Services Pvt Ltd and Oxygen Bio Research Pvt Ltd--with the firm.

"Since all the transferor companies are step down wholly owned subsidiaries of the company, no shares are proposed to be issued pursuant to the merger. This scheme is subject to requisite approvals, including under the Listing Agreement and by the hon'ble High Courts," company said in a statement.