Trading in Piramal Enterprises shares suspends from September 23 following merger with Piramal Finance

Synopsis

The NSE will suspend trading of Piramal Enterprises Ltd (PEL) shares effective September 23, 2025, due to its amalgamation with Piramal Finance Ltd (PFL), a move sanctioned by the NCLT. This merger, driven by RBI regulations and strategic benefits, consolidates operations under a single entity, enhancing service and shareholder value. CFO Upma Goel will resign by September 30.

The National Stock Exchange of India (NSE) has announced the suspension of trading in equity shares of Piramal Enterprises Ltd (PEL) with effect from September 23, following the closing hours of trading on September 22. This is due to the approved scheme of amalgamation between PEL and Piramal Finance Ltd (PFL).

“In pursuance of Regulation 3.1.2 of the National Stock Exchange (Capital Market) Trading Regulations Part A, it is hereby notified that the following security will be suspended from trading w.e.f. September 23, 2025 (i.e., closing hours of trading on September 22, 2025),” the NSE circular read.

On September 16, Piramal Enterprises informed the BSE and NSE that the National Company Law Tribunal (NCLT), Mumbai Bench, had approved and sanctioned the Composite Scheme of Arrangement amongst Piramal Enterprises Limited and Piramal Finance Limited.

The company confirmed that it had filed the certified copy of the NCLT order with the Registrar of Companies, Ministry of Corporate Affairs, Government of India, thereby making the scheme effective from September 16, 2025.

As a result, PEL has merged with PFL and has been dissolved without winding up.

In a separate disclosure dated September 19, Piramal Enterprises had also informed the exchanges about the resignation of its Chief Financial Officer and Key Managerial Personnel, Upma Goel. Her last working day with the company will be on September 30.

The merger was driven by strategic, regulatory, and operational considerations. PFL, previously registered as a Housing Finance Company, had been reclassified as a Non-Banking Financial Company – Investment and Credit Company (NBFC-ICC).

RBI regulations prohibit multiple NBFC-ICCs within the same group, necessitating this amalgamation for compliance. PFL, being an upper-layer NBFC, is also required to be listed by September 30, 2025, under the RBI’s Scale-Based Regulations.

The merger is expected to consolidate operations by bringing together PEL and PFL under a unified entity, offering a single platform for customers and lenders.

According to the company, this consolidation will help deliver a wider range of financial products, improve service experience, and create economies of scale, which are anticipated to boost profitability and shareholder value.

Shareholders of Piramal Enterprises will receive equity shares in the merged entity, Piramal Finance.

Also read: Defence tech companies can join $500 billion club in 5-8 years: Gurmeet Chadha

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

...moreless

...moreless