World Bank arm to invest $75 mn in Glenmark

International Finance Corp. (IFC), the private sector lending arm of the World Bank, said it was looking to invest up to $75 million, or about Rs.500 crore, in Glenmark Pharmaceuticals Ltd, which is raising $200 million to reduce debt and fund expansion plans. The Mumbai-based drugmaker is raising the capital by selling quasi-equity instruments. The company plans to use the money to expand

manufacturing capacity, mostly in India, build research and development (R&D) capacity for new products and reduce debt.

Of the total, Glenmark plans to invest a significant amount in capital expenditure over the next three years across its facilities in India, IFC said in the disclosure. Glenmark has been facing pricing pressure across its key markets. The fund raise will help in deleveraging the balance sheet, thereby improving profitability along with expanding capacity at its plants.

As of 31 March, Glenmark’s debt stood at around Rs.4,000 crore, with a debt-equity ratio of 0.6. For year ended 31 March, Glenmark posted a net profit of Rs.702 crore onRs.7,649.6 crore of revenue.