Glenmark Pharmaceuticals dips after drug maker announces it will divest 75% stake in Glenmark Life Sciences to Nirma
Glenmark Pharma Nirma news: Glenmark Pharmaceuticals announced the divestment of a 75 per cent stake in its subsidiary, 'Glenmark Life Sciences'. An agreement has been signed with Nirma Limited for a share sale. The company will sell 91.89 crore shares at the price of Rs 615 per share.
Glenmark Pharma share price NSE, Glenmark Pharma Nirma news: Glenmark Pharmaceuticals shares on Friday dipped as much as 6.3 per cent to touch the day's low of Rs 775 on the NSE in the early morning trade after clocking a 52-week high of Rs 880 on Thursday, September 21. The trend in the Mumbai-based drug maker follows after it announced the divestment of a 75 per cent stake in its subsidiary, 'Glenmark Life Sciences'. An agreement has been signed with Nirma Limited for a share sale. The company will sell 91.89 crore shares at the price of Rs 615 per share. The counter ended at Rs 803.05, down 2.98 per cent on NSE.
The company's board, at its meeting held on September 21, 2023, considered and approved the sale of 91,895,379 shares, representing 75 per cent share capital of Glenmark Life Sciences Ltd, to Nirma Ltd at a price of Rs 615 per share, aggregating to Rs 5,651.5 crore, Glenmark Pharma said in a regulatory filing. As part of the transaction, Glenmark Life Sciences and Nirma have agreed to certain non-compete and non-solicit arrangements for a specified period, it added.
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However, Glenmark Pharma will continue to own 7.84 per cent of Glenmark Life Sciences. Commenting on the divestment, Glenn Saldanha, Chairman and Managing Director, Glenmark Pharma said, "We are pleased to announce this strategic transaction with Nirma, which marks a significant milestone in shaping an independent growth trajectory for GLS." "This deal aligns with Glenmark’s strategic intent of moving up the value chain to become an innovative/brand-led organization, with continuous focus on our core therapeutic areas of dermatology, respiratory and oncology. It also presents an opportunity for us to strengthen shareholder value through deleveraging and enhancing our overall return profile,” he added.
Speaking on the announcement Yasir Rawjee, Managing Director and CEO, Glenmark Life Sciences Limited said, “Today’s 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 term. We will continue to operate as an independent API company under the new ownership of Nirma Limited."
"I see this as an opportunity to further strengthen our position in the API industry and continue the growth trajectory," he added.