Glenmark Generics files for IPO

Fri. October 02, 2009; Posted: 11:10 AM

MUMBAI, India, Oct 01, 2009 (The Economic Times - McClatchy-Tribune Information Services via COMTEX) -- GMKPF | Quote | Chart | News | PowerRating -- Glenmark Generics, the generics arm of Glenmark Pharmaceuticals, on Wednesday filed the draft prospectus with Sebi to raise Rs 550-600 crore from the primary market.

Glen Saldanha, chairman of Glenmark Pharmaceuticals, confirmed the filing of the prospectus for an initial public offering (IPO). A person close to the development said the Mumbai-based drugmaker Glenmark will dilute a 15-20 percent stake in Glenmark Generics through IPO.

A substantial portion of the proceeds will be utilised to reduce Glenmark's debt of around Rs 1,900 crore, said the person. Glenmark has recently raised Rs 400 crore through a qualified institutional placement (QIP) of shares and plans to organise another Rs 300 crore from its cash flows to retire debt. The company plans to bring down its debt to below Rs 800 crore, he added.

Last year, Glenmark Pharmaceuticals spun off its active pharmaceutical ingredients (API) business and the generic or off-patent formulations business into a subsidiary -- Glenmark Generics. The US operations, an Argentinean franchise for cancer drugs, four manufacturing plants in India and its European filings for drug marketing rights, were also transferred to Glenmark Generics. Glenmark Generics sales during the past fiscal stood at Rs 983 crore, a 25 percent growth over the previous year.

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