Glenmark Life Sciences share price falls 2% as Nirma readies to buy 75% stake in it
₹625.10 against the previous close of ₹627.10 and slipped 2.3 per cent to the level of ₹612.75. On Thursday (September 21), the company said Nirma had agreed to buy a 75 per cent stake in it for ₹5,651.5 crore in a deal that values the company at ₹7,535.4 crore. Mint reported first on 15 August that the cement-to-detergent maker was the sole bidder for the stake put on the block by parent Glenmark Pharmaceuticals Ltd, which is selling shares to Nirma at ₹615 apiece.
Nirma will make a mandatory open offer to all public shareholders of Glenmark Life Sciences for an additional 17.15 per cent stake at ₹631 a share. The life sciences company listed on the bourses in August 2021 at ₹720 a share. The sale will be subject to various conditions, including receipt of regulatory and shareholder approvals.
Glenmark Pharma will use the money from the sale to repay debt. Read more: Nirma to buy Glenmark Life Sciences for ₹5,651 crore Meanwhile, Glenmark Pharmaceuticals will sell a 75 per cent stake in its subsidiary unit Glenmark Life Sciences, to Nirma for ₹615 per share for an aggregate consideration of ₹5.651.75 crore. The Mumbai-based drugmaker will continue to own a 7.84 per cent stake in Glenmark Life Sciences with the stake reduction.
Read more: Glenmark Pharma to divest 75% stake in subsidiary Life Sciences unit to Nirma for ₹5,651 crore Glenmark Life Sciences share price has gained about 51 per cent in the last one year against a 12 per cent gain in the equity benchmark Sensex. The stock hit its 52-week high of ₹674 on August 1 this year and its 52-week low of ₹369 on February 22 this year on BSE. Glenmark Life Sciences reported revenue of ₹578.45 crore for the June quarter (Q1 FY24), up 18 per cent year-on-year (y-o-y).
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