- By Vaamanaa Sethi
- Fri, 22 Sep 2023 01:22 PM (IST)
- Source:JND
Glenmark Life Sciences share price contracted over 2% in the early trade on Friday. The stock opened at Rs 625.10 in the early morning trading session on September 22 and later fell by 2.23% to Rs 612.75 per share.
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Glenmark Life Sciences shares fell after Nirma Group announced its plans to acquire over 75% stake in the pharma company for Rs 5,651.5 crore in a deal that values the company at Rs 7,535.4 crore.
In August, it was reported that cement-to-detergent maker Nirma is the sole bidder for the stake put on block sale by the parent company Glenmark Pharmaceuticals Ltd. The shares were sold at Rs 615 per piece.
Nirma will make a mandatory open offer to acquire an additional 17.15% stake in Glenmark Life Sciences from all public shareholders at a price of Rs 631 per share. Glenmark Life Sciences listed on Indian bourses in August 2021 at Rs 720 per share.
However, the sale will be subject to various conditions, including receipt of regulatory and shareholder approvals. According to reports, Glenmark Pharma will use the money to repay debts.
Glenmark Pharmaceuticals is set to divest a 75% stake in its subsidiary, Glenmark Life Sciences, to Nirma at a per-share price of Rs 615. This transaction will result in an overall consideration of Rs 5,651.75 crore. Despite this stake reduction, the Mumbai-based pharmaceutical company will retain a 7.84% ownership in Glenmark Life Sciences.
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During the June quarter (Q1 FY24), Glenmark Life Sciences recorded revenues of Rs 578.45 crore, marking an 18% increase compared to the previous year. The net profit for this period amounted to Rs 135.45 crore, reflecting a 24% growth.
