Glenmark Pharma is considering selling a majority of its 82% stake in unit Glenmark Life Sciences in a bid to trim the debt burden, according to media reports.

Kotak Mahindra Capital has reportedly been hired to oversee the sale. Buyout funds have been contacted to gauge interest in the purchase, reports say.

Glenmark Life had a market valuation of Rs 5,013 crore ($611 million) as of the stock’s closing price on Monday, which values Glenmark Pharma’s stake at Rs 4,110 crore.

Glenmark Pharma’s net debt was Rs 2,615 crore as of December 2022, an increase from Rs 2,150 crore in the year-ago period.

It has been aiming to reduce its debt, including through the sale of some dermatology brands to Eris Lifesciences for Rs 3,400 crore in January.

In addition to the debt reduction, Glenmark also had regulatory requirements to meet, with the company expect to meet a promoter holding norm and cut its stake to 75% by August 2024.

Glenmark Pharma’s shares jumped as much as 1.6% to Rs 495.45, their highest since February 11, 2022. Glenmark Life’s shares were down about 1% at Rs 404 rupees in midday trading.