The Ahmedabad-based Nirma group and other top private equity companies have joined the contest to acquire Glenmark Life Sciences, which is listed on the BSE.
If successful, the acquisition by chemicals-to-cement company Nirma would be a significant boost for the group's health-care division, similar to its successful foray into the cement sector following its purchase of Lafarge India's assets for approximately Rs 9,400 crore in July 2016. It then purchased Emami cement assets for Rs 5,500 crore in February 2020.
Glenmark owns 82.8 percent of the company, which has a market capitalization of Rs 6,361 crore as of Tuesday, with its shares ending at Rs 519 each.
Aside from Nirma, American private equity behemoths KKR, Blackstone, and BPEA-EQT are interested in acquiring a share in the company, according to a banking source. "All of the companies have done their due diligence, and offers are expected soon," a banker familiar with the situation said. Glenmark intends to utilise the money to lower its net debt, which stood at Rs 2,904 crore as of March of this year.
In April of this year, the Nirma group paid approximately Rs 350 crore for the acquisition of Stericon Pharma, a manufacturer of eye drops and contact lenses.