Bid to buy Glenmark Life for Rs 7000 crore: Nirma leads acquisition race with ChrysCap, Sekhmet

All bidders are believed to have tied up with European and Japanese banks to finance their offers.

As per various media accounts, the board of Glenmark Pharmaceuticals will reportedly take a decision regarding the sale soon and the amount received will be used to repay the debt of Rs 2,904 crore. At present, the Mumbai-headquartered Glenmark Pharmaceuticals owns an 83 per cent stake in Glenmark Life Sciences, controlled by the Saldanha family.

Originally, five bidders were in the race to buy the company which reported a turnover of Rs 2,161 crore and a net profit of Rs 466.96 crore for the year ended March 2023.

Medical Dialogues team had earlier reported that Indian conglomerate Nirma Ltd. and PAG-backed Sekhmet Pharmaventures were among the shortlisted bidders for a controlling stake in Glenmark Life Sciences Ltd

Also Read: Washing Powder Maker Nirma And Sekhmet Vie For USD 731 Million Glenmark Life Stake: Sources

Lately, soap and detergent maker Nirma has placed an aggressive bid and has emerged as the frontrunner to acquire Glenmark Life Sciences. The acquisition of Glenmark Life Sciences, if successful, will significantly boost Nirma’s aspirations in the health care sector.

Nirma, which was originally in the detergent segment, bought the Emami Group’s cement business, with 8.3 million tonnes per annum capacity, for $ 770 in 2020 and subsequently renamed it as Nuvoco Vistas. Nirma bought the cement unit of Lafarge for $ 1.4 billion in 2016. Nirma made a total income of Rs 8,685 crore on a standalone basis.

In April, the Nirma group had purchased Stericon Pharma, an eye drop and contact lens maker, for around Rs 350 crore. The group is already involved in selling medical devices under the Nirlife Healthcare banner. Last week, Nirma expressed its intention to raise funds for acquisitions in the range of Rs 5,000 crore to Rs 7,000 crore in either domestic or overseas markets. If the planned acquisitions do not proceed accordingly, the company may look to invest in its existing businesses.

According to a recent media report in Money Control, Nirma reported a profit of Rs 909 crore in FY23 and is likely to generate annual cash accruals of more than Rs 1,700 crore as against debt repayment of Rs 650-750 crore in FY24.

The Indian subsidiary of Gamot API is known as Sekhmet Pharmaventures Pvt. Ltd. Asian private equity major PAG has formed an investment platform called Gamot API Pte. Ltd. based in Singapore, along with Indian private equity firms, CX Partners and Samara Capital, to buy stakes in fast-growing Indian pharma companies.

ChrysCapital is a leading India-focussed private equity funds with investments in financial services, healthcare, manufacturing and new economy.

In June, ChrysCapital acquired 90 per cent stake in HDFC Credila, in partnership with BPEA EQT, at a valuation of Rs 10,350 crore. Established in 1999, ChrisCapital manages more than USD 5 billion across nine funds and is one of the leading investment firms based in India.

On August 1, shares of Glenmark Life Sciences closed 5 per cent lower at Rs 638 apiece with a total market capitalization of Rs 7,824 crore, says a recent Business Standard report.

Glenmark Life has 137 APIs in its portfolio and it supplies these ingredients to more than 700 pharma companies in multiple countries. The company was listed in August 2021 after a Rs 1,500 crore plus IPO, reports The Indian Express.