Glenmark Pharma to sell 75% in Glenmark Life Sciences to Nirma for Rs.5,652-Cr

Mumbai-based Glenmark Pharmaceuticals is to sell a 75% stake in its fellow listed, active pharmaceutical ingredients (API) focused subsidiary, Glenmark Life Sciences Ltd (GLS), to Nirma Ltd, for INR 5,651.5 crore. Nirma will be making a mandatory open offer to the public shareholders of GLS. As part of the deal, Glenmark Pharma will sell 91,895,379 shares - representing 75% share capital of GLS - to Nirma at INR 615 per share. Glenmark Pharma will continue to own a 7.84% in GLS after the divestment. Glenmark Pharma has also agreed to procure APIs from GLS for five financial years with effect from April 2024. Kotak Investment Banking acted as the exclusive financial advisor to Glenmark Pharma and GLS on this transaction. S&R Associates acted as legal advisor to Glenmark Pharma and Trilegal acted as legal advisor to GLS. The deal will enable Glenmark Pharma to reduce its debt and focus on its own brands in the areas of dermatology, respiratory and oncology.