Glenmark Life Sciences shares gained 2.4 percent to Rs 639 per share on October 10 after the company declared an interim dividend of Rs 22.5 per share for the fiscal year 2023-24 (FY24).
The stock has surged 48.5 percent this year against a 7.6 percent rise in the benchmark Sensex. The stock touched a 52-week high of Rs 674 on August 1, 2023.
On October 9, the company told exchanges that the record date to determine the shareholders entitled to receive the dividend would be October 17. The interim dividend would be paid on or after October 23, 2023.
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Earlier, India Ratings and Research placed Glenmark Life’s bank facilities on “rating watch with developing implication” after the company said it would sell 75 percent stake to Nirma.
The “rating watch” was also assigned due to a likely change in ownership, which will necessitate an evaluation of linkages with a new parent and lack of clarity on the post-sale capital structure of Glenmark Life.
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As per the agreement, Glenmark Pharma is likely to sell 75 percent stake in Glenmark Life for Rs 5,651 crore. After the transaction, Glenmark Pharma will hold a 7.8 percent stake in Glenmark Life. The transaction is likely to close by the end of FY24.
Glenmark Life sells around 30 percent of its products to Glenmark Pharma and contributed about 11 percent to the parent company’s consolidated revenue in FY23, the ratings agency said in a report.
As per the company’s annual report 2022-23, Glenmark Life’s total income rose 2 percent year-on-year (YoY) to Rs 2,190 crore in FY23. Profit jumped 11 percent YoY to Rs 466 crore.
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