Vote Recommendation: Piramal Enterprises Limited

Piramal Enterprises Ltd. (PEL) has issued to its shareholders, the notice of the court convened meeting for a composite scheme of arrangement and amalgamation under Section 391 to 394 read with Section 78 and Sections 100 to 103 and other applicable provisions of the Companies Act, 1956, between PHL Holdings Private Ltd. (PHPL) and Piramal Enterprises Ltd. (PEL) and their respective shareholders and creditors.

Piramal Enterprises Ltd. has 47.01% public shareholding with institutional investors holding 28.30% as of December 31, 2012. Aberdeen Global Fund and LIC are the largest institutional shareholders holding 9.31% and 3.23% respectively.

The details of the meeting are given below:

  • Meeting Type: Court Convened Meeting
  • Meeting Date: March 13, 2013, Wednesday
  • Meeting Time: 11:00 A.M. I.S.T.
  • Meeting Venue: Y. B. Chavan Auditorium, General Jagannath Bhosale Marg, Opposite Mantralaya, Nariman Point, Mumbai – 400 021, Maharashtra

InGovern Research Services Pvt. Ltd. has released the vote recommendation report on Piramal Enterprises Ltd.’s above mentioned court convened meeting and has recommended shareholders to vote AGAINST the resolution for the following reasons:

  • Inadequate disclosures on promoter group entities and related party transactions between these promoter group entities made prior to this Scheme to effect this merger.
  • Rationale given for this amalgamation can also be achieved through an inter-se transfer or a scheme of amalgamation at the promoter group level and does not suggest any specific business logic for PEL shareholders.
The full report can be downloaded from here: PEL CCM 13032013 – InGovern Vote Recommendations