Besides the technicalities of Stake sale, Open Offer, Special dividend etc … I would like to point out a few more observations –
(a) Glenmark Life was paying hefty dividends in the past as well. IMO – this was being done as its parent was debt ridden. Now on, the money can be ploughed back to improve the growth rates of Glenmark Life – specially to meet the requirements of its CDMO business
(b) For CDMO business to do well, the innovators have to have complete trust in their partner. Glenmark Life’s parent ( GPL ) was involved in developing its own NCE. This was a big obstacle which in my opinion always prevented Glenmark Life to be a serious CDMO player. Now this overhang should be over
These two things make me bullish about the deal, besides the open offer
Disc: biased, invested. Not SEBI registered
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