IFC to anchor $200m round for India's Glenmark

Glenmark plans to use the new capital to expand its manufacturing capacity, primarily through improvements to its existing facilities in India; it will also build its research and development capabilities and pay down its debt, according to a disclosure. The listed company will raise the capital through issuing quasi-equity instruments on the market.

IFC will support Glenmark with its expertise and experience in the global pharmaceutical industry. In addition, IFC's reputation is expected to attract additional investors, and the institution plans to maintain its commitment over the long term. This will reduce Glenmark's financial uncertainty and discourage frequent trading, which can cause volatility in the stock price.

Founded in 1977, Glenmark manufactures and markets both generic drugs and active pharmaceutical ingredients (APIs). The company also claims to be a leading player in the discovery of new molecules. Currently its promoters, the Saldanha family, own a 46% stake in the company, while public shareholders own the rest.

For the 2015 financial year the company reported INR67 billion ($990 million) in revenue, up from INR60 billion the previous year. Over the same period, profit fell from INR5.5 billion to INR4.8 billion.

Singapore's state-backed investment group Temasek Holdings backed Glenmark last year, committing INR9.45 billion for 10.8 million shares, giving it a 3.8% stake in the company. The investment made Temasek the largest institutional investor in Glenmark at the time.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Healthcare
• PIPEs
• India
• IFC
• Pharmaceuticals