Updated: July 27, 2021 9:57:43 am
Glenmark Life Sciences IPO: The initial public offering (IPO) of Glenmark Life Sciences, a wholly-owned subsidiary of Glenmark Pharmaceuticals, will open for subscription on Tuesday, July 27, 2021, at a price band of Rs 695-720 per share. The offer will be available till Thursday, July 29, 2021.
Glenmark Life Sciences is a leading developer and manufacturer of select high value, non-commoditized active pharmaceutical ingredients (APIs) in chronic therapeutic areas, including cardiovascular disease, central nervous system disease, pain management and diabetes. It also manufactures and sells APIs for gastro-intestinal disorders, anti-infectives and other therapeutic areas.
Through the upcoming offer, Glenmark Life Sciences aims to raise Rs 1,513.6 crore with the help of a fresh issue of equity shares worth Rs 1,060 crore and an offer for sale (OFS) comprising of up to 63 lakh equity shares worth Rs 453.6 crore by Glenmark Pharma.
Half of the Glenmark Life Sciences issue has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors.
The proceeds from the fresh issue will be used towards the payment of outstanding purchase consideration to the promoter for the spin-off of the API business and for funding the capital expenditure requirements, according to the information provided in the red herring prospectus (RHP).
Investors who wish to subscribe to the Glenmark Life Sciences IPO can bid in a lot of 20 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,400 to get a single lot of Glenmark Life Sciences. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).
The applicants also must note that the cut-off time for UPI mandate confirmation is Friday, July 30, 2021, upto 12:00 pm. If they fail to do so then their application may not be considered.
Kotak Mahindra Capital Company, BofA Securities India and Goldman Sachs (India) Securities are the global coordinators and book running lead managers, while DAM Capital Advisors, BOB Capital Markets and SBI Capital Markets are the book running lead managers to the IPO. KFin Technologies is the registrar of the issue.
The anchor portion opened on Monday, July 26, 2021, one working day prior to the opening date for the public offer, during which Glenmark Life Science raised over Rs 454 crore from 19 anchor investors in lieu of 63,06,660 equity shares at Rs 720 each, news agency PTI reported.
The anchor investors include the likes of HSBC Global Investment Funds, Government Pension Fund Global, Oaktree Emerging Markets Equity Fund LP, Copthall Mauritius Investment Ltd -ODI account, Societe Generale-ODI, Kuber India Fund and Reliance General Insurance Company among others.
The share allotment is likely to take place on August 3, 2021, and the shares are expected to be listed on August 6, 2021.
The research team at Anand Rathi Share and Stock Brokers and Geojit Financial Services in their respective IPO notes have recommended a “Subscribe” to the offer.
Geojit Research in its IPO note said, “At the upper price band of Rs 720, GLSL is available at a P/E of 25x (diluted) which appears fairly priced. We assign a “Subscribe” rating for the issue on a long-term basis considering its strong focus on R&D, expansion plans (1726.6KL when completed), growth opportunity in CDMO services and expanding complex API portfolio.”
Anand Rathi Research in its report noted, “Given the company’s leadership in select high-value non-commercialized APIs in chronic therapeutic areas, cost leadership, strong management, strong balance sheet, growing business, high RoNW of 46.71% in the fiscal ended March 31, 2021, and reasonable valuations; we give this IPO a “Subscribe” rating.”
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