Glenmark

ights or control over a company, whether individually or acting in concert with others. These provisions
may discourage or prevent certain types of transactions involving an actual or threatened change in control
of us. For more information, see “The Indian Securities Market – Takeover Code”.
Our ability to freely raise foreign capital may be constrained by Indian law.
As a pharmaceutical company, while we are classified by the Indian government for automatic approval of
foreign direct equity investment, we do require regulatory approvals to raise more than U.S.$500 million of
foreign currency denominated indebtedness outside India in a single transaction. The need to obtain such
regulatory approval could constrain our ability to raise the most cost effective funding, which may
adversely affect our future growth. We cannot assure you that any required approvals will be given when
needed or at all or that such approvals if given will not have onerous conditions.
Current Indian government policy allows 100% foreign ownership of Indian companies in the
pharmaceutical sector. However, the Indian government may change this policy in the future, and restrict
the shareholding of foreign investors. If such change restricted our ability to issue and foreign investors’
ability to hold shares above a specified limit, we may be restricted in our ability to raise additional funding
through equity issuances in the future.
Risks Relating to the Equity Shares
An investor will not be able to sell any of the Equity Shares subscribed in the Issue other than on a
recognised Indian stock exchange for a period of 12 months from the date of the Issue of Shares.
Pursuant to the SEBI Regulations, for a period of 12 months from the date of the issue of Shares in the
Issue, Qualified Institutional Buyers subscribing to the Equity Shares in the Issue may only sell their Equity
Shares on the Bombay Stock Exchange and the National Stock Exchange (the “Indian Stock Exchanges”)
and may not enter into any off-market trading in respect of these Equity Shares. We cannot be certain that
these restrictions will not have an impact on the price of the Equity Shares.
You may be subject to Indian taxes arising out of capital gains on the sale of the Equity Shares.
The sale of Shares by any holder may give rise to tax liability in India and in the country of your residency
(where Double Taxation Agreement provisions do not exist), as discussed in “Taxation”.
There may not be an active or liquid market for our Equity Shares, which may cause the price of the
Equity Shares to fall and may limit your ability to sell the Equity Shares.
The price at which the Equity Shares will trade after this Issue will be determined by the marketplace and
may be influenced by many factors, including:
· our financial results and the financial results of the companies in the businesses we operate in;
· the history of, and the prospects for, our business and the sectors and industries in which we
compete;
· the valuation of publicly traded companies that are engaged in business activities similar to ours;
and
· significant developments in India's economic liberalization and deregulation policies.
There is no assurance regarding the continuity of the existing active or liquid market for our Equity Shares
or the ability of investors to sell Equity Shares or the prices at which the investors may be able to sell the
Equity Shares.
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