Glenmark Generics IPO by June 2008
Glenn Saldanha, MD and CEO, Glenmark Pharma, said the company is seeking shareholder nod for transfer of domestic API and generic business for Rs 698 crore. “The US generics business, API business, and European assets will be a part of Glenmark Generics.” The IPO of Glenmark Generics is slated to hit the markets by June 2008, he said. “We have not yet filed a draft red herring prospectus for Glenmark Generics. The IPO will hit the market by Q1 FY09-end.”
Excerpts from CNBC-TV18’s exclusive interview with Glenn Saldanha:
Q: You had already announced that your IPO will come out for Glenmark Generics and this IPO will be scheduled for Q1 FY09. Are you valuing your assets at Rs 698? The assets, which will be going from Glenmark to Glenmark Generics?
A: This is part of Glenmark Generic business. This is part of the assets that we are transferring in order to spin off all these assets into Glenmark Generics which is the 100% subsidiary of Glenmark Pharma, so that we can lift the subsidiary in the first quarter.
Q: You are saying that assets which will be transferred from Glenmark to Glenmark Generics will be Rs 698 crore?
A: This is part of the restructuring exercise that we are going through, which is basically transferring some of the assets, plant and infrastructure to Glenmark Generics. Then we would list Glenmark Generics as we have stated in our plan.
Q: Have you filed for DRHP and when is your IPO scheduled to list?
A: Tentatively we are slating towards the end of Q1– around May-June timeframe. We have not yet filed for DRHP as we are still in the process of finalizing the bankers and completing the whole reorganization process of the two businesses.
Q: Could you guide us in terms of your business what will be transferred to the new company which will be listed?
A: Glenmark Generics will comprise the US generics business, which will have sales in excess of USD 120 million per year. Our API is about USD 50-60 million and our European assets along with our Argentina Oncology franchise is about USD 15 billion odd.
