Pharmaceutical giant Glenmark Pharma is reportedly set to announce a stake sale in its subsidiary, Glenmark Life Sciences. The proceeds from the sale are expected to help in debt reduction and facilitate the company’s expansion in the US market.
What Happened: Glenmark Pharma is likely to discuss the proposed stake sale in Glenmark Life Sciences at a press conference later today, according to a report by CNBC Awaaz. Glenmark Pharma, however, has not officially confirmed this yet.
As per shareholding patterns for the June quarter, Glenmark Pharma currently holds a majority stake of 82.85% in Glenmark Life Sciences. A potential reduction of 7%-8% in company’s stake in Glenmark Life had earlier been hinted by VS Mani of Glenmark Pharma during a conversation with CNBC-TV18.
See Also: These Mutual Funds Bought Over 2 Lakh Shares Of Irfc Last Month
Glenmark Life Sciences, a company that specialises in developing, manufacturing and supplying non-commoditised APIs in chronic therapeutic areas, is expected to witness a boost in its share value post the announcement.
Why It Matters: The potential stake sale is a significant move for Glenmark Pharma as it aligns with the company’s strategic plan to reduce debt and expand in the US market. This step would also help it comply with the public shareholding norms, potentially increasing the liquidity of Glenmark Life Sciences’ shares.
The announcement is expected to positively impact the share value of Glenmark Life Sciences, thus benefitting the shareholders.
Price Action: Glenmark Life Sciences’ share price was up 0.49% at ₹638.20
Read Next: This Ashish Dhawan Backed Small Cap Stock Is Rising As Hdfc Amc Gets Investment Nod
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.