Glenmark Life Sciences shares hit Rs 600 level on reports Nirma, others in race to buy API maker

Shares of Glenmark Life Sciences Ltd climbed over 5 per cent in Monday's trade amid a media report suggesting that Nirma Group and Sekhmet Pharmaventures are in competition to acquire Glenmark Life Sciences. As per a report by ET, Glenmark Pharmaceuticals Ltd that owns 82.85 per cent stake in Glenmark Life Sciences may sell the API developer and manufacturer in bid to deleverage.

Following the development, the stock rose 4.57 per cent to hit a 52-week high of Rs 617 on BSE. The Glenmark Life Sciences stock has risen 48 per cent year-to-date.

Post its strong March quarter results, BofA Securities recently upped its target price on the stock to Rs 630 from Rs 530 earlier, citing favourable risk-reward. BOB Capital Markets which finds Neuland Laboratories, Aarti Drugs and Solara Active Pharma as peers, suggested target of Rs 600 on the stock last month. The stock has breached that target on Monday.

ET cited sources as saying that ChrysCapital is also said to be looking at the opportunity, but have yet to make any binding bids.

Sekhmet is an active pharma ingredient (API) platform backed by private equity groups PAG, CX Partners and Samara Capital. Glenmark Life Sciences is also an API developer and manufacturer. ChrysCapital, another homegrown fund, is also evaluating the opportunity of teaming up with limited partners GIC of Singapore and Canada's CDPQ, several people aware of the matter told ET.

However, the firm is yet to take a call on the matter and might opt out before binding bids are submitted by end of June, it suggested.