Glenmark Pharma to pare 75% stake in Glenmark Lifesciences for Rs 5,651 crore

22 Sep 2023 , 11:20 AM

Glenmark Pharmaceuticals (GPL) announced on September 21 that it will sell a 75% stake in Glenmark Life Sciences to Nirma for Rs 5,651 crore. The shares are being sold for Rs 615 each.

Currently, Glenmark Pharma owns 82.84% shares in the company.

In August, Nirma made a binding proposal for Glenmark Pharmaceuticals. The Ahmedabad-based conglomerate was considering inorganic ventures into the pharmaceutical sector and acquired a 100% share in Stericon Pharma Private Limited, a Bangalore-based contract development manufacturing organization (CDMO) that manufactures sterile contact lens cleaning solutions and eye drops.

Glenmark Life Sciences is an API manufacturer focused on research and development (R&D) with a local presence in markets such as North America, the United Kingdom, and Latin America. It provides APIs to over 700 pharmaceutical businesses in several countries.

The company specializes in chronic therapy areas such as cardiovascular illness, central nervous system disorders, pain management, and diabetes.

GPL will retain a 7.84% shareholding in Glenmark Life Sciences, but it and the other members of the Company’s promoter group will be recategorized as public shareholders.

Glenmark Lifesciences’ board of directors may evaluate, approve, and issue an interim dividend of Rs 22.50 per equity share before the transaction’s closure. In such a case, the sale consideration will be adjusted in accordance with the terms of the Share Purchase Agreement.

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