Glenmark Life Sciences (GLS) shares dipped over 4 per cent, ending the day at ₹842.85, on the BSE, following the announcement by Glenmark Pharmaceuticals that it was exiting the residual 7.84 percent stake in GLS through an offer for sale.
The floor price for the offer was fixed at ₹810 per share, the company said. The development comes about 10 months after Glenmark Pharma agreed to divest 75 percent of its stake in GLS to Nirma Limited, for ₹5,651 crore (at ₹615 per share), last September.
In its first earnings call this April, following the closure of the Nirma transaction, GLS Managing Director and Chief Executive Yasir Rawjee said they had a broad discussion with the new promoter on the way forward. “While our current direction on business would continue, we are working on various new initiatives to drive our growth further given the increased growth capital available with us,” he said, adding that their business with Glenmark Pharma has also been secured by entering into a master supply agreement for five years, starting April 1, 2024.
Further, he told analysts, “Nirma’s other pharma businesses would continue to run independently of us… They are largely India-based businesses .. So the overlap with us is hardly there.” GLS strategies would be driven purely by CDMO (contract development and manufacturing organisation) and API (Active Pharmaceutical Ingredients), he said. “Clearly, there is no plan to sort of merge any of the existing Nirma business or pharma businesses with the GLS API business,” he had said.