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Glenmark Pharma will own 7.84% in GLS after the divestment. The transaction is subject to customary conditions precedent, including receipt of regulatory and shareholder approvals.
Glenmark Pharma will continue to focus on consistent growth across its key markets whilst having a strong emphasis on return ratios with net cash positive balance sheet, ultimately creating value for its shareholders.
Commenting on the divestment, Glenn Saldanha, chairman and managing director, Glenmark Pharmaceuticals, said, “This deal aligns with Glenmark's strategic intent of moving up the value chain to become an innovative/brand led organization, with continuous focus on our core therapeutic areas of dermatology, respiratory and oncology. It also presents an opportunity for us to strengthen shareholder value through deleveraging and enhancing our overall return profile.”
Speaking on the announcement Yasir Rawjee, managing director and chief executive officer (CEO), Glenmark Life Sciences, said, “Today's announcement marks the next step in the journey of the company, one that will accelerate growth and help create more value for our stakeholders in the long term. We will continue to operate as an independent API company under the new ownership of Nirma Limited. I see this as an opportunity to further strengthen our position in the API industry and continue the growth trajectory.”
Glenmark Pharmaceuticals reported 18% decline in net profit to Rs 173.1 crore in Q1 FY24 as compared with Rs 211.1 crore in Q1 FY23. Total revenue from operations jumped 22.48% to Rs 3,401.6 crore during the quarter as compared with Rs 2,777.3 crore posted in same quarter last year.
The counter tumbled 3.75% to Rs 797 on the BSE.
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