28 June 2020 PIEL has announced that all Pharma related businesses at the group level would be merged into a wholly-owned subsidiary, Piramal Pharma Ltd (PPL). Further, PPL would get strategic growth investment from the Carlyle group for 20% equity stake in the company. EV for the proposed transaction is USD2.8b with an upside of USD360m if PPL achieves certain financial parameters in FY21. According to the manegement, PIEL would utilize part of the stake sale money to reduce net debt to INR25b from INR42b and the rest could be utilized for inorganic opportunities. With EV of USD2.8b (INR210b) and debt reduction to INR25b, the equity value works out to INR185b with a realized upside value of INR212b (USD360m). Accordingly, Carlyle would invest USD490m for the proposed 20% stake and an additional USD72m if the upside is triggered. Piramal Enterprises Consolidated leverage declined from 2.1x in FY19 to 1.4x in FY20. Leverage of the FS business declined from 3.9x to 2.