Nirma acquires 75% of gelmark at a whopping 5,651 cr, as it

On September 21, 2023, Glenmark Pharmaceuticals announced its intention to sell a 75% stake in its subsidiary Glenmark Life Sciences to Nirma at a price of ₹615 per share, representing a price of ₹5,651.75 crores. Even after this transaction, Glenmark Pharma will continue to hold 7.84% of Glenmark Life Sciences shares.

This resolution was passed at the board meeting held on the above date. Glenmark Pharma has confirmed the sale of 91,895,379 shares, equivalent to 75% of the share capital of Glenmark Life Sciences Ltd, to Nirma Ltd for ₹615 each, equivalent to a total of ₹5,651.5 crore. The announcement was made through regulatory filings with stock exchanges. As part of this transaction, Glenmark Life Sciences and Nirma have mutually agreed to specific non-compete and non-solicitation agreements for a specified period of time.

Nirma, known for its wide range of products including soaps and cement, would be kind enough to extend the mandatory open offer to all public shareholders of Glenmark Life Sciences. Nirma politely made a formal offer for shares in Glenmark Pharmaceuticals in August. Additionally, reports suggested the participation of private equity firm ChyrsCapital in the bid for Glenmark shares Pharmaceuticals.

Successful completion of the acquisition is subject to necessary regulatory approvals. This important development represents Nirma Group's venture into the Active Pharmaceutical Ingredients (API) industry and expansion of the group's existing pharmaceutical product line, which includes injectable products, for parents and ophthalmologists. This acquisition follows quickly on the heels of the group's March 2023 acquisition of Stericon Pharma Private Limited.

Glenmark Life Sciences Limited mainly specializes in API development, manufacturing and marketing. The company offers a wide range of products across various therapeutic categories, including cardiovascular disease, central nervous system disorders, diabetes, gastrointestinal health, oncology, pain management and infection control. coincide.

On Thursday, Glenmark Pharma shares witnessed a decline of 3.32 per cent to close at ₹828.05 per share on the BSE. During trading hours, the stock touched a low of ₹822.