Glenmark Pharma to sell 75% stake in Glenmark Life Sciences to Nirma Limited


Glenmark Pharmaceuticals (Glenmark Pharma), a research-led global pharmaceutical player, has inked a deal with Nirma Limited to divest a substantial 75% stake in its offshoot, Glenmark Life Sciences Limited (GLS), with each share pegged at INR 615/-. The overall consideration for this game-changing deal stands at an astounding INR 5,651.5 crores, after which Glenmark Pharma will retain a 7.84% holding in Glenmark Life Sciences. However, this transaction is contingent upon the fulfillment of customary prerequisites, such as securing the green light from regulatory bodies and obtaining shareholder consents.

Adding another layer to this strategic divestment, Nirma Limited will extend a mandatory open offer to all the public shareholders of Glenmark Life Sciences.

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Glenmark Pharma’s helmsman, Glenn Saldanha, the company’s Chairman and Managing Director, shared his upbeat perspective on this pivotal move. Saldanha articulated that partnering with Nirma is a pivotal stride in carving an autonomous growth path for Glenmark Life Sciences. He highlighted Glenmark Pharma’s commitment to climbing the pharmaceutical value ladder, emphasizing their unwavering focus on key therapeutic domains, namely dermatology, respiratory, and oncology. Saldanha believes that this transaction will pave the way for boosting shareholder value, accentuating Glenmark’s return metrics, and optimizing their debt profile.

Dr. Yasir Rawjee, who spearheads Glenmark Life Sciences Limited as its Managing Director and CEO, voiced his optimism regarding the announcement. He views this transition as a powerful impetus for Glenmark Life Sciences’ growth, anticipating heightened value for all stakeholders. Under the stewardship of Nirma Limited, GLS aims to further solidify its foothold in the API industry and sustain its upward momentum.

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As Glenmark Pharma navigates this strategic realignment, it remains steadfast in its mission to drive persistent growth across its pivotal markets. The company envisions a net cash positive ledger, with a relentless emphasis on delivering optimum shareholder value.

Glenmark Pharma’s exclusive financial advisory needs for this transaction were catered to by Kotak Investment Banking, while S&R Associates provided legal counsel. Meanwhile, Glenmark Life Sciences turned to Trilegal for legal advisories.

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To sum up, this divestment sees Glenmark Pharma parting with a 75% stake in Glenmark Life Sciences, transferring the majority to Nirma Limited, resulting in a substantial equity valuation of INR 75,354 million. Post-transaction, Glenmark Pharma’s share in Glenmark Life Sciences will stand at 7.84%. This move further mandates Nirma Limited to roll out an open offer to all of Glenmark Life Sciences’ public shareholders.

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