Shares of Glenmark Pharmaceutical witnessed sharp selling on Friday, a day after the company announced that it would divest a 75% stake in subsidiary Glenmark Life Sciences. The share price of the pharmaceutical major declined as much as 6.4% to hit an intraday low of ₹775.
On Friday, the share price of the pharmaceutical major opened 1.4% lower at ₹815.95, as against the closing price of the previous session at ₹828.05. At 12:00 pm, the share price of Glenmark Pharma was trading 4.45% lower at ₹791.20. During the session on Friday, the marketing capitalisation of Glenmark Pharma stood at ₹22,446.48 crore with more than 1.57 lakh shares exchanging hands as against the two-week average of 0.80 lakh shares. In the past one month, three months and six months, Glenmark Pharma has given 3.34%, 24.96% and 102.13% in return, respectively.
According to the company, Glenmark Pharma entered into a definitive agreement with Nirma Limited to divest a 75% stake in Glenmark Life Sciences at a price of ₹615/- per share for an aggregate consideration of ₹5,615 crore. Following this, Glenmark Pharma will own a 7.84% stake in Glenmark Life Sciences after the divestment. "The transaction is subject to customary conditions precedent, including receipt of regulatory and shareholder approvals. Pursuant to the transaction, Nirma Limited will make a mandatory open offer to all public shareholders of GLS," says Glenn Saldanha, chairman & MD, Glenmark Pharmaceuticals Limited.
The transaction is subject to customary conditions precedent, including receipt of regulatory and shareholder approvals. Pursuant to the transaction, Nirma Limited will make a mandatory open offer to all public shareholders of GLS, according to the company.
"The transaction is subject to customary conditions precedent, including receipt of regulatory and shareholder approvals. Pursuant to the transaction, Nirma Limited will make a mandatory open offer to all public shareholders of GLS," says Yasir Rawjee, MD & CEO, Glenmark Life Sciences Limited.
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.
In the April to June quarter of FY24, the company reported an 18% year-on-year (YoY) decline in its profit at ₹173.13 crore as against ₹211.1 crore during the same quarter last year. During the quarter under review, the company’s consolidated revenue from operations was up 22.4% at ₹2,777.29 crore as against ₹3,401.6 crore in the same period last year. In the June quarter, the company's total expenses stood at ₹3,037.05 crore as against ₹2552.43 crore in the same period last year.
Leave a Comment
Your email address will not be published. Required field are marked*