Nirma will launch an open offer to purchase a 75% interest in Glenmark Life Sciences for Rs 5,651 crore

22 Sep 2023 , 11:30 AM

To sell a 75% shareholding in its subsidiary, Glenmark Life Sciences Ltd. (GLS), Glenmark Pharmaceuticals Ltd. announced it has reached a formal deal with Nirma Ltd. at a price of Rs 615 per share for a total value of Rs 5,651.5 crore, subject to closing adjustments. 

After the sale, Glenmark Pharma will hold 7.84% of GLS. According to Glenmark Pharmaceuticals in a filing with stock markets, the acquisition is subject to standard antecedent conditions, including receiving regulatory and shareholder approval.

Nirma Ltd. will conduct a required open offer to all public shareholders of GLS in accordance with SEBI regulations.

‘This deal aligns with Glenmark’s strategic intent of moving up the value chain to become an innovative/brand led organisation, with continuous focus on our core therapeutic areas of dermatology, respiratory, and oncology,’ said Glenn Saldanha, Chairman and Managing Director of Glenmark Pharmaceuticals. ‘It also presents an opportunity for us to strengthen shareholder value through deleveraging and enhancing our overall return profile,’ the speaker continued. 

‘This announcement marks the next step in the journey of the company, one that will accelerate growth and help create more value for our stakeholders in the long run,’ said Dr Yasir Rawjee, Managing Director and CEO of Glenmark Life Sciences Ltd. Under Nirma Ltd.’s new ownership, we will carry operating as an independent API business.

Glenmark Pharma stated that it would continue to put a strong emphasis on return ratios with a net cash positive balance sheet while focusing on sustained expansion across its main markets, ultimately producing value for its shareholders.

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