Generic drug manufacturer Glenmark Pharmaceuticals on Friday said it plans to raise up to Rs 945 crore by issuing 1.08 crore shares to Temasek Holdings, the investment arm of Singapore government, on a preferential basis.
Generic drug manufacturer Glenmark Pharmaceuticals on Friday said it plans to raise up to Rs 945 crore by issuing 1.08 crore shares to Temasek Holdings, the investment arm of Singapore government, on a preferential basis.
In a filing on BSE, the Mumbai-based company said that its board of directors in a meeting has decided to raise funds by way of issue of up to 1.08 crore equity shares of Re 1 each for cash to Aranda Investments (Mauritius) Pte (a non-promoter company) on preferential basis at a price of Rs 875 per equity share aggregating to approximately Rs 945 crore (around $150 million) subject to the requisite approvals of the shareholders and any regulatory authorities, as may be required.
Aranda Investments is a wholly-owned indirect subsidiary of Temasek Holdings. The investment will make Temasek a minority shareholder in the company with a stake of around 3.5-3.8%, according to industry experts.
Glenn Saldanha, chairman and managing director, Glenmark Pharmaceuticals, said, "We are pleased that one of the world's most reputed financial institution Temasek Holdings is considering investment in the company.
Glenmark continues to remain committed to being a truly innovative led global organisation and will continue to invest significantly in building a strong product pipeline across geographies."
According to experts, the investment would help Glenmark to reduce its debt from around $400 million to $250 million with its debt equity ratio coming down from 0.9:1 to 0.5:1 post deal.
The shares of the company on BSE closed at Rs 864.45 per share, down 1.73% the previous close.
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