Piramal Enterprises Ltd, the financial services arm of the Piramal Group, on Tuesday (December 26) said its wholly-owned subsidiary Piramal Consumer Products Private Ltd (PCPPL) is acquiring Piramal Tower located at Peninsula Corporate Park, Lower Parel, Mumbai for ₹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
The deal involves an agreement between Piramal Consumer Products Private and AASAN Corporate Solutions Private Ltd (ACSPL), a promoter group company.
Also Read: Life insurers seek more time for submitting views on IRDAI's paper on high surrender value
The transaction not only allows Piramal Enterprises and its subsidiaries to meet their future office space requirements but also facilitates PCPPL's name change to Piramal Tower Private Limited, and an expansion of its business objectives to include acquiring, holding, letting out premises, and providing various services and amenities.
"We also wish to inform you that the Company has invested Rs 289.59 crores in PCPPL by way of subscription to rights issue. There is no change in the shareholding percentage of the company in PCPPL, pursuant to the aforesaid investment," the company said.
“PCPPL's turnover for FY21, FY22, and FY23 was ₹71.27 lakh, ₹151.35 lakh, and ₹70.42 lakh, respectively. The transaction is a related party transaction undertaken at arm’s length. The interest of the promoter/promoter group/group companies of the company is only to the extent of PCPPL being a wholly-owned subsidiary and ACSPL being a company belonging to the promoter group," the company added.
Shares of Piramal Enterprises Ltd ended at ₹904.75, down by ₹10, or 1.09% on the BSE.
