Nirma's open offer to buy more stake in Glenmark Life to start on Feb 15

Nirma Ltd will kick off a Rs 1,343.05-crore open offer next week to acquire an additional 17.33 per cent stake from public shareholders of Glenmark Life Sciences Ltd, according to a regulatory filing.

The development follows Nirma's deal to acquire 75 per cent stake in Glenmark Life Sciences for Rs 5,651.5 crore agreed in September last year.

The open offer is being made to the public shareholders to acquire up to 2.13 crore equity shares representing 17.33 per cent of the voting share capital at an offer price of Rs 631.20 per share aggregating to a total consideration of up to Rs 1,343.05 crore, said the letter of offer by Nirma shared on BSE by Glenmark Life Sciences.

The offer shares include the entire public shareholding in the target company (over 2.1 crore shares) and 2.63 lakh vested ESOPs, it added.

The opening date (commencement of the tendering period) for the open offer has been fixed on February 15, 2024 and will close on February 29, 2024, as per the letter of offer, the letter said.

Last year in September, Glenmark Pharmaceuticals board had approved divestment of 75 per cent stake in its subsidiary Glenmark Life Sciences to Nirma Ltd for Rs 5,651.5 crore.

The parties had signed a definitive agreement, under which the Mumbai-based drug maker agreed to offload a 75 per cent stake in Glenmark Life Sciences (GLS) to Nirma Ltd at a price of Rs 615 per share and retaining just a 7.84 per cent stake in GLS.