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Glenmark Life Rises 2% After Declaring Interim Dividend, Check Details

Glenmark Life Sciences witnessed a 2.4 percent rise in its shares, reaching Rs 639 per share on October 10. This boost came on the heels of the company’s declaration of an interim dividend of Rs 22.5 per share for the fiscal year 2023-24 (FY24).

The stock has demonstrated an impressive surge of 48.5 percent so far this year, outperforming the benchmark Sensex, which recorded a 7.6 percent increase. Notably, the stock reached its 52-week high at Rs 674 on August 1, 2023.

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On October 9, the company informed the stock exchanges that the record date to ascertain the shareholders entitled to receive the dividend would be October 17. The interim dividend is scheduled to be disbursed on or after October 23, 2023.

Previously, India Ratings and Research had placed Glenmark Life’s bank facilities on “rating watch with developing implication” following the company’s announcement of a 75 percent stake sale to Nirma.

The “rating watch” status was attributed to the anticipated change in ownership, necessitating an assessment of the new parent’s linkages and the lack of clarity regarding Glenmark Life’s post-sale capital structure.

Under the agreement, Glenmark Pharma is set to sell a 75 percent stake in Glenmark Life for Rs 5,651 crore. Following the completion of the transaction, Glenmark Pharma will retain a 7.8 percent stake in Glenmark Life. The deal is expected to conclude by the end of FY24.

Glenmark Life currently supplies approximately 30 percent of its products to Glenmark Pharma and contributed approximately 11 percent to the parent company’s consolidated revenue in FY23, according to a report by the ratings agency.

According to Glenmark Life’s annual report for 2022-23, the company’s total income witnessed a 2 percent year-on-year (YoY) increase, reaching Rs 2,190 crore in FY23. Additionally, its profits recorded an impressive 11 percent YoY growth, amounting to Rs 466 crore.

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