 "ChrysCap joins Nirma, Sekhmet in race to snap up Glenmark Life Sciences")
Private equity (PE) firm ChrysCapital has joined the fray to acquire Glenmark Life Sciences, which could cost as much as Rs 7,000 crore, according to banking sources.
Earlier, Nirma, a detergent-to-chemicals maker, and Sekhmet Pharmaventures had submitted binding bids for the company on Monday.
Glenmark Pharmaceuticals, which holds an 83 per cent stake in Glenmark Life Sciences, will soon make a decision regarding the sale.
Proceeds from the sale would be utilised to alleviate its own debt of Rs 2,904 crore, stated banking sources.
Executives from ChrysCapital were unavailable for comment, and Nirma, Sekhmet, and Glenmark did not respond to emailed queries.
All the bidders are said to have teamed up with European and Japanese banks to finance their bids.
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Earlier in June, ChrysCapital had secured a 90 per cent stake in HDFC Credila, in partnership with BPEA EQT, at a valuation of Rs 10,350 crore.
Established in 1999, ChrysCapital manages $5 billion across nine funds, making it one of the leading investment firms based in India.
Glenmark Life Sciences shares closed 5 per cent lower on Tuesday at Rs 638.60 a share, with a total market valuation of Rs 7,824 crore.
Among the three bidders, Nirma has placed an aggressive bid, aiming to target health care as its next focus area, a banker said.
In April, the Nirma group had purchased Stericon Pharma, an eye drop and contact lens maker, for around Rs 350 crore.
The acquisition of Glenmark Life Sciences, if successful, will significantly boost Nirma’s aspirations in the health care sector.
The group is already involved in selling medical devices under the Nirlife Healthcare banner.
Last week, Nirma expressed its intention to raise funds for acquisitions in the range of Rs 5,000 crore to Rs 7,000 crore in either domestic or overseas markets.
If the planned acquisitions do not proceed accordingly, the company may look to invest in its existing businesses.