Companies

Temasek to invest ₹945 crore in Glenmark Pharma

Our Bureau Mumbai | Updated on January 23, 2018

Move will help ease drug co’s debt load

Glenmark Pharmaceuticals is set to receive an infusion of ₹945 crore from Temasek Holdings (Private) Ltd, the investment arm of the Singapore government.

The move will help ease Glenmark’s debt burden of $420 million (over ₹2,500 crore), a person familiar with the development said. In a statement to stock exchanges, Glenmark said Temasek Holdings was considering investing in it through its wholly-owned subsidiary Aranda Investments (Mauritius) Pte Ltd, in equity shares to be issued by the company on a preferential basis.

Following its board meeting on Friday, Glenmark said it would raise funds by issuing up to 108,00,000 equity shares of ₹1 on a preferential basis for cash to Aranda, a foreign portfolio investor, at ₹875 per share. The move awaits regulatory approvals.

CMD Glenn Saldanha said that the company was committed to innovation and would continue to invest significantly in building a strong product pipeline.

The Mumbai-based drug maker has been seeing much activity recently. Earlier this month, its foreign investment proposal was one of two made by drug companies that was approved by the Cabinet Committee on Economic Affairs.

Glenmark sought the clearance to be able to increase its foreign institutional investor holding to 49 per cent from 35 per cent — a move that would involve foreign funds of over ₹2,000 crore, it had then said.

Last year, Glenmark’s board had approved a proposal to merge Glenmark Pharmaceuticals’ subsidiaries – Glenmark Generics Ltd (GGL) and Glenmark Access Ltd (GAL) – with the parent company.

Published on April 17, 2015

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