[ad_1]
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.
Three bidders – ChrysCapital, Nirma and Sekhmat Pharmaventures – have made offers to acquire Glenmark Life Sciences, a major player in the active pharmaceuticals ingredient (API) manufacturer in the country.
The acquisition is expected to cost around Rs 6,500-7,000 crore for the successful bidder, banking sources said. The bidding is for the 82.5 per cent stake from Glenmark Pharmaceuticals, controlled by the Saldanha family. While sources said Nirma – promoted by Gujarat-based Karsanbhai Patel as a one-man operation in 1969 — is almost the frontrunner for the stake, the final chapter on the stake sale is not yet written.
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.
You have exhausted your
monthly limit of free stories.
To continue reading,
simply register or sign in
Continue reading with an Indian Express Premium membership starting Rs 91 per month.
This premium article is free for now.
Register to read more free stories and access offers from partners.
Continue reading with an Indian Express Premium membership starting Rs 91 per month.
This content is exclusive for our subscribers.
Subscribe now to get unlimited access to The Indian Express exclusive and premium stories.
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.
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.
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.
The stake sale in Glenmark Life is at a time when mergers & acquisitions have fallen steeply in the current year following the rise in interest rates and inflation.
According to the data sourced from Bloomberg, the fall in the value was 76 per cent in the first half of 2023 to $3.2 billion from 1,201 deals. This was in contrast to the $13.42 billion in the first half of 2022 from 1,914 deals
Mahavir Lunawat, Managing Director, Pantomath Capital Advisors, said “global mergers and acquisitions activity including that in India, shrank as high interest rates, high inflationary pressure and fears of a recession soured the deal-making appetite. While domestic parameters remain upbeat, global uncertainties including geo-political issues have had an impact on market sentiment. Besides, corporate governance issues unearthed in series of marquee unicorns and valuation drain in most of the new age businesses also contributed in subdued confidence level, as overall deal making activity involving India witnesses dry run.”
© The Indian Express (P) Ltd
First published on: 02-08-2023 at 05:45 IST
[ad_2]
Source link