The necessity for the Parent to look for suitors for GLS became public knowledge around the time when Glenmark agreed to pay up 87.5 million USD (roughly 75 crores INR) to settle US lawsuits… I read somewhere that this is to be paid in 2 annual installments… In its books it has a net debt of 2880 crore INR as on March 31, 2023.
The continued dividend from GLS helps in the interest servicing of the parents loan. A minority stake sale of GLS would be enough to take care of the financial outflow obligation arising from the US settlement.
The Promoter of Glenmark had also replied to a question in the recent Q4 concall that to the extent they need to adhere to the settlement, they would explore stake sale in GLS…
As long as the valuations continue to improve…
Q1 results on friday and the concall therafter would continue to interest me… post Q4 results there was Madhusudan Kela asking the management questions… he was interested to know if the dividend continues going forward, the projected margins in the coming few quarters and so on and so forth… no question on management change from him…
| Subscribe To Our Free Newsletter |
