Glenmark Board Approves Conversion Of Debentures

Mumbai, September 29: | Updated: Sep 30 2003, 05:30am hrs
The board of Glenmark Pharma-ceuticals Ltd has approved the conversion of debentures issued to CDC Financial Services (Mauritius) Ltd and South Asia Regional Fund into equity shares, at a price of Rs 305.42 per share.

This has resulted in allotment of 818,557 equity shares each to CDC Financial Services and South Asia Regional Fund. In addition, the conversion also resulted in dilution of the promoters stake to 54.59 per cent from 63 per cent, a Glenmark release said.

CDCs stake post-conversion will go up to 14.36 per cent. CDC had around 0.26 per cent stake in Glenmark before conversion, which they had bought from the market, sources said.

The company at its recently concluded annual general meeting (AGM) stated that the debentures will be converted at a price range between Rs 295 to Rs 315 per share.

The Glenmark scrip at the Stock Exchange, Mumbai opened at Rs 399.90 and touched a high of Rs 409.95 to close at Rs 393.45, registering a 1.61 per cent decline.

CDC had subscribed to the debentures last year, when the Glenmark scrip hovered at around Rs 250.

As a result of the conversion of debentures into equity, the paid up equity share capital of Glenmark will increase from Rs 10.19 crore to Rs 11.83 crore and the reserves and surplus from Rs 132.39 crore to Rs 180.75 crore.

The secured debt of the company shall stand reduce to Rs 69.35 crore from Rs 119.35 crore, improving the debt equity ratio.

The companys secured loan had increased to Rs 119.35 crore during 2002-03, mainly due to the convertible debentures of Rs 50 crore from CDC apart from a term loan of Rs 20 crore.

The company, however, had repaid non-convertible debentures amounting to Rs 31 crore out of Rs 45 crore during the said year.