Temasek invests $151m in India's Glenmark Pharma

According to an exchange filing, Temasek is subscribing to 10.8 million shares at INR875 apiece, giving it a 3.8% stake in the business. The investment will make Temasek the largest institutional investor in Glenmark; the promoters continue to hold a 46.45% stake.

The Indian company said the funds raised from the issue would be used to reduce borrowing costs and to fuel the further growth of the business through new product development and business acquisitions.

Established 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, with seven currently in various stages of clinical and preclinical development.

Glenmark employs 10,400 people in over 80 countries, and has 14 manufacturing facilities in four countries, as well as six R&D centers. The company reported revenues of INR60.1 billion for the 2014 financial year, up from INR50.2 billion in 2013. Over the same period net profit slipped from INR6.28 billion to INR5.46 billion.

This is Temasek's second significant investment in India's pharmaceuticals space. In September last year it bought a 10.16% stake Intas Pharmaceuticals in what was a partial ext for ChrysCapital. In January, Temsek also acquired an 18% stake in Indian hospital operator Global Health, which operates the Mendanta super speciality hosptical in Gurgaon.

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• Topics
• South Asia
• Healthcare
• Expansion
• Southeast Asia
• India
• Temasek Holdings
• Pharmaceuticals
• Growth capital
• Singapore
• healthcare