Temasek unit to invest Rs 945 cr in Glenmark

By: | Updated: April 18, 2015 12:57 AM

Pharmaceutical major Glenmark on Friday announced the issue of preferential equity shares worth Rs 945 crore to Temasek’s...

Glenmark, Glenmark equity shares, Temasek, Aranda Investments, Pharmaceutical industry, pharma industryGlenmark has scheduled an extraordinary general meeting on May 13 for shareholders’ approval to the preferential issue of equity shares to Aranda Investments.

Pharmaceutical major Glenmark on Friday announced the issue of preferential equity shares worth Rs 945 crore to Temasek’s wholly-owned indirect Mauritius-based subsidiary Aranda Investments.

Glenn Saldanha, chairman & managing director of Glenmark, said: “We are pleased that one of the world’s most reputed financial institutions, Temasek Holdings, is considering investment in the company. Glenmark continues to remain committed to being a truly innovation-led global organisation and will continue to invest significantly in building a strong product pipeline across geographies.”

Temasek Holdings is the investment arm of the Singapore government. Glenmark said its board of directors have decided to raise funds via issue of up to 1,08,00,000 equity shares at Rs 1 each on a preferential basis for cash to Aranda, a foreign portfolio investor (FPI), at a price of Rs 875 per equity share, aggregating to around Rs 945 crore. The investment is subject to requisite approvals of shareholders and any regulatory authorities required.

Glenmark has scheduled an extraordinary general meeting on May 13 for shareholders’ approval to the preferential issue of equity shares to Aranda Investments.

On April 7 the Cabinet Committee on Economic Affairs had permitted Glenmark to increase FII investment limit from 35.07% to 49%. The CCEA had said this could potentialy result in an inflow of about Rs 2,022 crore, at Glenmark’s current market cap.

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