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Blackstone looks at IPO route for Piramal Glass

Blackstone looks at IPO route for Piramal Glass


US-based asset manager Blackstone, which has been trying to monetise its portfolio firm Piramal Glass Pvt Ltd (or PGP Glass as it is now called), through a stake sale either partly or fully, is exploring the initial public offer route and taking the company public with a valuation in the range $2-2.5 billion, sources said. 

Last year Blackstone had initiated talks to sell a controlling stake in PGP Glass and while several PE firms had approached it, the deal could not reach a conclusion mainly due to valuation and pricing mismatch, sources with knowledge of developments said. They said it was looking for a valuation of around $2 billion. It had acquired the company from the Piramal Group in late 2020 for a valuation of around $1 billion and would be expecting a good return on its exit, they added.

Also read: Blackstone mulling over $1 billion public float of India warehousing assets

While the IPO route is being explored, it is not certain whether this will lead to a listing eventually and a parallel track for divestment to a strategic is also on the cards, sources cautioned, pointing out that Blackstone had the flexibility to pivot quickly according to changing circumstances. 

There was no response from Blackstone as of press time.

Strategic Listings

Last year Blackstone, which manages assets of $1 trillion globally, had one of its most productive years in India taking three of its portfolio companies public – affordable mortgage lender Aadhar Housing in May,  diamond and jewellery certification firm International Gemmological Institute and hotels operator Ventive Hospitality in December. 

Under Blackstone, PGP Glass has notched up a remarkable performance, its consolidated revenue rising to ₹4,099 crore in FY24 from ₹2,860 crore in FY22. Its net profit rose to ₹305 crore in FY24 from a loss in FY22. 

Blackstone had acquired the company, right bang in the middle of Covid, in view of the potential it saw in its unique position as a global specialist in design, production, and decoration of glass packaging, catering to industries such as cosmetics, perfumery, food & specialty spirits, and pharmaceuticals.

A good part of the company’s revenues are from exports, selling to over 50 countries  The company has its design, production, and decoration facilities in India, and Sri Lanka with an overall capacity of 1,600 tonnes per day, with 11 furnaces and 64 production lines, according to information on its website.  It has offices and warehousing facilities in France, Germany, Turkey, Spain, Brazil, India, UAE, UK, and Sri Lanka. 





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