The National Company Law Tribunal (NCLT) has approved the spin-off of Piramal Enterprises’ (PEL) pharmaceutical business and the simplification of the company’s corporate structure, Piramal Enterprises said in a regulatory filing with the stock exchange on August 12.

It said that with the issuance of the order, Piramal Enterprises Limited (NBFC) and Piramal Pharma Limited will become two separate listed companies.

Piramal Enterprises further mentioned that its board of directors in October 2021 approved the spin-off of the pharmaceutical industry and the streamlining of its corporate structure. It said the company has obtained approval for the Comprehensive Scheme of Arrangement from the Reserve Bank of India, SEBI, the Stock Exchange and our creditors and shareholders, following board approval. The RBI then approved PEL’s application for an NBFC license in July 2022.

The company also said it expects the performance of spin-offs to improve over the next few years as they become more focused and able to pursue faster expansion.

In exchange for the split, PEL shareholders will receive 4 shares of PPL for every 1 share of PEL.