Acquisition Race: Sekhmet Pharmaventures and Nirma Group Vying for Glenmark Life Sciences

14 Jul 2023 , 03:24 PM

Sekhmet Pharmaventures and Nirma Group are competing to acquire BSE-listed Glenmark Life Sciences (GLS) as promoter Glenn Saldanha aims to reduce the company’s debt load.

Sekhmet Pharmaventures, backed by private equity firms PAG, CX Partners, and Samara Capital, specializes in active pharma ingredients (API). At the same time, Nirma Group is an Ahmedabad-based firm already in the race.

ChrysCapital, an India-focused private equity firm, is considering teaming up with limited partners GIC of Singapore and Canada’s CDPQ for the acquisition but may withdraw before binding bids are submitted.

In the fiscal year 2021-2022, India imported APIs and bulk drugs worth Rs 35,000 crore, accounting for 35% of the country’s total API requirement, with China supplying 65-70% of these imports.

The Indian government is offering incentives to domestic API manufacturers as part of the ‘Make in India’ initiative, aiming to reduce reliance on China.

GLS has seen a 52% increase in its share price over the past three months, reaching a 52-week high of Rs 595. The firm hopes to secure a control premium of Rs 700-720 per share, despite the stock appreciation.

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