India's Glenmark Pharma weighs selling stake in Glenmark Life - Mint

Alivus Life Sciences

11/04/2023 08:18

BENGALURU, April 11 (Reuters) - India's Glenmark
Pharmaceuticals Ltd  GLEN.NS  is considering selling a majority
of the 82% stake it holds in Glenmark Life Sciences Ltd
 GLEM.NS  as it looks to lower its debt load, the Mint business
daily reported on Tuesday.
    Glenmark Pharma has hired Kotak Mahindra Capital Co Ltd to
oversee the sale of its stake in Glenmark Life and has contacted
buyout funds to gauge interest, Mint reported, citing two people
familiar with the matter.
    Glenmark Pharma, Glenmark Life, which makes active
pharmaceuticals ingredients (APIs) for drugs, and Kotak did not
immediately respond to Reuters' request for comment.
    Glenmark Life had a market valuation of 50.13 billion rupees
($611 million) as of the stock's closing price on Monday, which
values Glenmark Pharma's stake at 41.1 billion rupees.
    Glenmark Pharma's net debt was 26.15 billion rupees as of
December 2022, an increase from 21.5 billion rupees in the
year-ago period.
    It has been aiming to reduce its debt, including through the
sale of some dermatology brands to Eris Lifesciences  ERIS.NS 
for 3.40 billion rupees in January.
    Glenmark Pharma had first explored selling a stake in its
API business in 2019 but ultimately opted to spin off and list
Glenmark Life Sciences in 2021.
    Besides to lower its debt, the sale is also necessary as
Glenmark Pharma has until August 2024 to cut its stake to 75% to
meet Indian regulatory norms on promoter holdings, Mint
reported. 
    Glenmark Pharma's shares jumped as much as 1.6% to 495.45
rupees, their highest since Feb. 11, 2022. Glenmark Life's
shares were down about 1% at 404 rupees in midday trading.
 


($1 = 82.0470 Indian rupees)

 (Reporting by Navamya Ganesh Acharya; Editing by Sonia Cheema
and Savio Dsouza)
 ((Navamya.GaneshAcharya@thomsonreuters.com; +91 8805175330 ;))