Glenmark Pharma shares fall over 6% on subsidiary stake sale to Nirma
Glenmark Pharma fell over 6% to Rs 775 in Friday's intraday trade on BSE after the firm received board approval to sell a 75% stake in subsidiary Glenmark Life Sciences to Nirma Ltd.
Glenmark Pharmaceuticals has entered into a definitive agreement with Nirma to divest a 75% stake in Glenmark Life Sciences for Rs 5,651.5 crore, at a price of Rs 615 per share, the company said in an exchange filing.
Glenmark Life Sciences is the listed subsidiary of Glenmark Pharmaceuticals, and the latter owns more than 82% stake in the former. Post the sale, Glenmark Pharma will continue to own 7.84% in Glenmark Life Sciences, the former said in a release.
Glenmark Life Sciences contributed close to 17% to the consolidated revenue of Glenmark Pharmaceuticals in 2023.
As of March-end, Glenmark Life’s net worth was Rs 2,138 crore.
“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,” said Glenn Saldanha, Chairman and Managing Director, Glenmark Pharmaceuticals.
Meanwhile, Glenmark Life Sciences will continue to operate as an independent API company under the new ownership of Nirma Ltd, said Yasir Rawjee, Managing Director and CEO of the company, said.
At 10.11 a.m., the scrip was trading 5.6% lower at Rs 782 on BSE. However, on a year-to-date basis, the stock has surged over 80%.
Domestic brokerage firm Motilal Oswal, said, «The stake sale removes the debt-related concern for GNP.
In fact, it would have additional cash to recalibrate the innovative pipeline and improvise branded generics business. However, it would be earnings neutral as we believe the net reduction in
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