Glenmark Pharmaceuticals Plans Stake Reduction in Glenmark Life Sciences

21 Sep 2023 , 03:28 PM

Glenmark Life Sciences saw a 1% increase in afternoon trade due to reports of parent company Glenmark Pharmaceuticals planning to reduce its stake in the company. However, independent verification of this development is pending.

As of June 30, Glenmark Pharmaceuticals held an 82.84% stake in Glenmark Life Sciences. Glenmark Pharmaceuticals is working on meeting the SEBI requirement to reduce its stake to 75% by selling 7-8%.

SEBI mandates that promoters cannot hold more than 75% of a company’s stake, and Glenmark has until August 2024 to meet this requirement. Nirma and private equity firm ChrysCapital submitted bids for Glenmark Pharmaceuticals’ stake in August.

In the April-to-June quarter, Glenmark Life Sciences reported a 18% YoY growth in revenue at Rs 578.45 crore and a 24% increase in net profit at Rs 135.45 crore. The company’s EBITDA was Rs 195 crore, up by 24.8% YoY.

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