Constantly thinking ahead
of the curve
Over the last three decades, we have undertaken several bold initiatives and made key strategic choices to transform PEL multiple times. Most of these decisions taken, while thinking ahead of the curve, have proved quite successful in the long term. These are recurring patterns of success which have resulted in significant value creation for all our stakeholders over the years.
Key Decision
Entered Pharma
Exited Domestic Formulations
Entered Financial Services
Raised ~$1 Billion
Strategy and Execution
- Indian Pharma promoters were not keen on M&As
- Grew through a series of acquisitions and alliances
- Derived synergies by rationalising manufacturing & distribution cost
- India started recognising drug patents effective 2005
- Anticipated price control & heightened competitive regime
- Growth of domestic branded generic business had peaked
- Entered the sector post 2008 financial crisis
- Capital constraint created potential for higher yields
- Leveraged our strong in-house capabilities & experience in the sector
- In October 2017, raised capital to primarily fund the growth of the Financial Services business
- The fund raise was done much in advance before the need to raise capital
Outcome
Created 3rd largest Pharma company of India
Exited at 9x sales and 30x EBITDA – one of the highest valued deal in branded generics space globally
Domestic industry was later impacted by tighter regulatory environment
Created the 2nd largest real estate developer financing platform in India with a loan book size of `56,624 Crores
Consistently maintained a healthy asset quality with GNPA ratio of <1% for the last 12 quarters
Raised ~`7,000 Crores through QIP of CCDs and rights issue, with widespread participation by marquee investors
Further strengthened our balance sheet enabling the Company to remain strong despite tightened liquidity environment post September 2018