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Drug-maker Piramal Healthcare would share the broad contours of where it expects to invest funds received from the sale of its businesses by April, the Chairman, Mr Ajay Piramal, told analysts.
Piramal Healthcare had sold its domestic formulations business to multinational drug-maker Abbott last year for Rs 17,000 crore. Subsequently, the company had sold its diagnostics business to Super Religare Laboratories Ltd (SRL) for Rs 600 crore.
And though there has been much speculation on where the group would invest these funds, the promoters have kept their cards close to the chest.
The company is still in the process of evaluating options, Mr Piramal said, adding that they were looking at areas of long-term interest. While details may still be awhile – by April, the company will be able to give a direction on where the funds can be invested, Mr Piramal told Business Line .
The only businesses that the company would not invest in are tobacco and liquor, Mr Piramal had said last year, while announcing the company's plans to buyback up to 20 per cent of Piramal Healthcare's equity shares.
Buyback extension
The timeline of the buyback too has been extended, and the process is now expected to be completed by March 31, he said. The buy back, earlier projected to be completed by February-end, involves a cash outflow up to Rs 2,510 crore.
Further, Piramal Healthcare's management said that Rs 10,721 crore has been received from the Abbott transaction, and the remaining Rs 7,158 crore would be received in four tranches starting September 2011.
Piramal Healthcare at present has a debt of Rs 793 crore on its books.
Also, of the total Rs 3,600 crore that the company has to pay as tax on the transaction, it has paid up Rs 2,700 crore in two tranches, a company executive said.
Acquisition
Mr Piramal also indicated that the company would invest in acquiring new technology or businesses that would complement its existing operations. At present, the company is actively promoting and building the critical care, over-the-counter and custom manufacturing segments of its business, he said.
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