Nirma, Sekhmet Pharmaventures vie for $731 mn Glenmark Life stake: Reports

Posted on by

Written by Manuel Baigory, Vincey Chan, and Baiju Kalish



Indian conglomerate Nirma Ltd. and PAG-backed Sekhmet Pharmaventures are among the bidders selected for a controlling interest in Glenmark Life Sciences Ltd. , according to people familiar with the matter.

The suitors, who asked not to be identified because the information is private, said the suitors entered the latest round of bidding for a stake of about 83% in the Mumbai-listed company owned by Glenmark Pharmaceuticals Ltd.

Shares in Glenmark Life rose 3.8% on Friday. They were up 0.7% at 12:42 pm in Mumbai, valuing the controlling stake at about 60 billion rupees ($731 million).

People said Glenmark Pharma is working with advisors to look for buyers for its stake in the unit as it looks to raise cash and reduce debt. People said deliberations are underway and bidders may not proceed with formal bids. Representatives for Glenmark Life, Glenmark Pharma, Nirma and PAG declined to comment, while Sekhmet Pharmaventures did not respond to requests for comment.

Its website shows that Glenmark Life develops and manufactures active pharmaceutical ingredients in chronic therapeutic areas such as cardiovascular disease, central nervous system disease, pain management, and diabetes. It has a range of 139 molecules and supplies its products to clients in India and abroad including Europe and North America. The company has four factories in India.

Glenmark Life raised about 15 billion rupees in an initial public offering in Mumbai in July 2021. Its shares have fallen by about 18% from their IPO price of 720 rupees each.

Nirma, known for its eponymous brand of laundry detergent, also makes table salt and industrial products including soda ash and sulfuric acid, according to its website.

Sekhmet Pharmaventures is the Indian subsidiary of Gamot API, which was formed by private equity firm PAG along with Indian peers CX Partners and Samara Capital to buy stakes in fast-growing Indian pharmaceutical companies, its website shows. Sekhmet acquired a controlling stake in Anjan Drug Pvt Ltd in 2020 and also invested in Optimus two years later.

(Updates with Glenmark Life’s post in the third paragraph.)

– With the help of Cathy Chan.

© 2023 Bloomberg LP