Glenmark Pharma weighs selling stake in Glenmark Lifesciences

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 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.