Relevant Document:Glenmark Sale of Life Sciences Unit
Unlisted Indian detergent and soap maker Nirma Ltd. plans to raise INR 35 billion ($420.7 million) through privately placed three-year non-convertible debentures, or NCDs to back the acquisition of a 75% stake in Glenmark Pharma subsidiary, Glenmark Life Sciences, said two sources familiar with the matter.
Barclays, Kotak Mahindra Bank and Axis Bank have been mandated for the NCDs which are expected to pay an annualized coupon of around 9%, the sources said.
The NCDs will be issued once Nirma launches the open offer for Glenmark which may take around two months to complete, the sources said.
On Sept. 21, Glenmark Pharma
announced that the pharmaceutical company has agreed to divest a 75% stake in its subsidiary pharmaceutical ingredients maker Glenmark Life Sciences to Nirma at INR 615 per share, for INR 56.515 billion, implying an equity valuation of INR 75.354 billion.
Nirma Ltd. will make a mandatory open offer to all public shareholders of Glenmark Life Sciences, the announcement states.
The deal is subject to conditions precedent, including receipt of regulatory and shareholder approvals, according to the announcement.
Barclays declined to comment. Nirma, Kotak Bank and Axis Bank did not respond to requests for comment.
– Dipika Lalwani, Malvika Joshi