Glenmark sells Life Sciences arm to Nirma

Glenmark Pharma (GPL) is selling 75% stake in Glenmark Life Sciences (GLS) to Nirma.

  • GPL currently holds 82.84% in GLS. Post transaction it would be left with 7.84%.
  • The transaction has been agreed at Rs 615/ share implying an equity valuation of Rs 7,535 cr for GLS.
    • GPL will get Rs 5,651.5 cr for 75% stake sale.
    • Agreed price is similar to the current trading price of GLS
  • Nirma, in line with the regulations, will be making the mandatory open offer to all the public shareholders of GLS.

GPL is doing the sale to consolidate it’s focus on the core brand business. It would utilise the sale money to retire debt and become net cash positive.

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