Glenmark to benefit from IFC's investments of $ 75 mn.

International Finance Corporation (IFC) will be investing close to Rs. 500 crore or $75 mn in Mumbai based pharma company - Glenmark. Glenmark pharmaceuticals Ltd, has planned to raise $200 mn with an aim to reduce its debt and fund its expansion plan.

Glenmark will be using the proceeds to expand manufacturing capacity and build research & development (R&D) capacity for new products.

Pricing pressure in several key markets has affected profitability for Glenmark. The funds raised will help deleverage the balance sheet and thus help improve the profitability of the company. With a debt to equity ratio of 0.6 the total debt for the company stands at Rs. 4,000 crore.

With 17 manufacturing facilities across the globe and 13 in India, the company has several molecules either in clinical trials, or ready to enter clinical trials.

Glenmark Pharma has been down by almost 18 per cent over a 1 year period. The stock was down on Friday by 1.56 per cent or Rs. 12 per share on an intra-day basis. The stock was trading at Rs. 756 per share at the time of filing this report.

Broader market is trading volatile with an upward bias with Sensex at 26598 level up by almost 68 points or 0.28 per cent.