Private equity firm ChrysCapital has joined the race to buy Glenmark Life Sciences, which could cost around Rs 7,000 crore, a report by Business Standard said on August 2 citing anonymous banking sources.
Soap and detergent maker Nirma and Sekhmet Pharmaventures also submitted their bids for the company on July 31.
The board of Glenmark Pharmaceuticals will reportedly take a decision regarding the sale soon and the amount received will be used to repay the debt of Rs 2,904 crore. At present, the Mumbai-headquartered Glenmark Pharmaceuticals owns an 83 per cent stake in Glenmark Life Sciences.
Moneycontrol couldn't verify the report independently.
All bidders are believed to have tied up with European and Japanese banks to finance their offers, the report mentioned. Reports said Nirma reported a profit of Rs 909 crore in FY23 and is likely to generate annual cash accruals of more than Rs 1,700 crore as against debt repayment of Rs 650-750 crore in FY24. The Ahmedabad-based detergents-to-cement conglomerate wants to make an aggressive bid for Glenmark Life Sciences as it is eyeing healthcare as the next big focus area.
Also Read: Cash Market | Glenmark looks to recover lost ground
If the deal materialises, it will give an impetus to the group's ambition to enter in the healthcare sector. Currently, the group is selling all medical devices under Nirlife Healthcare.
In June, ChrysCapital acquired 90 per cent stake in HDFC Credila, in partnership with BPEA EQT, at a valuation of Rs 10,350 crore. Established in 1999, ChrisCapital manages more than $5 billion across nine funds and is one of the leading investment firms based in India.
Reports mentioned that the Nirma Group has emerged as the frontrunner to acquire Glenmark Life Sciences.
On August 1, shares of Glenmark Life Sciences closed 5 per cent lower at Rs 638 apiece with a total market capitalization of Rs 7,824 crore.
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