Mumbai, June 17: Shares of Piramal Life Sciences Ltd (PLSL) today surged on the stock exchanges on reports that two healthcare funds—MPM Capital and OrbiMed —were close to picking up a stake in the company.

PLSL is the demerged research unit of Piramal Healthcare Ltd (formerly Nicholas Piramal India Ltd). Its chairman Ajay Piramal had confirmed that the company might engage a strategic or financial investor and could dilute over 10 per cent of its equity to such players.

It is believed that PLSL is in talks with both MPM Capital and OrbiMed to acquire nearly 15 per cent in the company. After the recent deal involving Ranbaxy Laboratories and Daiichi Sankyo, industry circles do not rule out the possibility of other entities expressing interest in acquiring a stake in PLSL.

On the Bombay Stock Exchange, the PLSL stock surged nearly 10 per cent to close at Rs 296.95. After opening at Rs 217.40, the stock had shot to a intra-day high of Rs 305.90.

However, late in the evening, PLSL issued a communication to the stock exchanges saying, “new chemical entity research is a capital-intensive activity for which the company explores various strategic funding initiatives from time to time”.

“However, as a policy and in the interest of its shareholders, the company does not comment on any report relating to potential strategic initiatives unless they have reached the definite stage. Any comment by the company on strategic initiatives that are either preliminary in nature or at the negotiating stage would otherwise be speculative.’’

PLSL has around 14 drugs in various stages of development. Its research pipeline covers oncology, inflammation, diabetes and infectious diseases.