Nirma buys 75% stakes In Glenmark Life Sciences to make Glenmark Pharma debt-free

September 24, 2023
News
57 secs read

Source: Business Today

Detergent soap maker Nirma has acquired a 75 per cent stake in Glenmark Life Sciences at an enterprise value of about Rs 7,500 crore in a deal reflective of a rising investment interest in healthcare and pharmaceutical industry, one of the world’s fastest-growing sectors.

Glenmark Pharmaceuticals has entered into a share purchase agreement with Nirma Limited to divest a 75 per cent stake in Glenmark Lifesciences at a price of Rs 615 per share, amounting to Rs 5,650 crore. This transaction reflects a slight 2 per cent discount compared to the current market price of Glenmark Lifesciences. The proceeds from this sale will be utilized to retire Glenmark Pharmaceuticals’s outstanding debt, which stood at Rs 4,340 crore as of FY23.

Furthermore, the board of directors is contemplating the declaration of an interim dividend of Rs 2,250 crore before finalising the transaction. The expected closing date for this deal is in FY24, subject to obtaining the necessary regulatory and shareholder approvals. Post-transaction, Glenmark Pharma will still retain a 7.84 per cent stake in Glenmark Lifesciences. Additionally, the current promoter group members of Glenmark Pharmaceuticals will be reclassified as public shareholders, relinquishing their two board seats.

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