Glenmark Life Sciences, a subsidiary of Glenmark Pharmaceuticals, is planning an initial public offering (IPO) to raise $1,060 crore which will open for subscription on July 27 and close on July 29. The price range will be $695 to $720.
While 35 initial public offers (IPOs) have already taken place on markets in 2021, there are many more on the way. Glenmark Life Sciences, a subsidiary of Glenmark Pharmaceuticals, is the next to go public with its initial public offering. The IPO is expected to raise $1,060 crore for the company.
Glenmark Pharmaceuticals, the IPO’s parent company, will make an offer for sale (OFS) of up to 63 lakh shares.
Glenmark Life Sciences, a subsidiary of Glenmark Pharmaceuticals, is getting ready to launch its $1.06 billion initial public offerings (IPO). The company is in debt of 916 crores. CEO. Yasir Rajwee told Business Insider that the proceeds from the IPO will be used to expand two of the company’s operations in anticipation of a new surge of demand.
The IPO subscription period will begin on July 27 and end on July 29. It has specified a price range of $695,000 to $720,000.00.
The funds from the IPO will be used for capital expenditures, including expanding capacity at the Dahej (Gujarat) production site to fulfill projected future demand for its generic active pharmaceutical ingredients (API) products.
According to DRHP filings, Glenmark Life Science is a premier researcher and manufacturing of high-value, non-commoditized APIs in chronic therapeutic areas such as cardiovascular illness, central nervous system disease, pain management, and diabetes.
It now has leasehold locations in Gujarat’s Ankleshwar and Dahej, as well as Maharashtra’s Mohol and Kurkumbh, where it operates four multi-purpose manufacturing units.
They’ve built good ties with prominent worldwide generic pharmaceutical companies over the years, which has allowed them to extend our product portfolio and geographic reach. In the draught red herring prospectus filing, the firm stated, “As of March 31, 2021, 16 of the 20 largest generic companies in the world were our customers” (DRHP).
It also wants to increase its footprint in nations and areas that are implementing stricter regulatory frameworks and moving toward becoming well-regulated, such as South Korea, Taiwan, Russia, Brazil, Mexico, and Saudi Arabia.
According to the company’s IPO prospectus filed with the Securities and Exchange Commission, Glenmark Life Sciences is a leading developer and manufacturer of high-value ingredients used in drugs to treat chronic illnesses such as cardiovascular disease, central nervous system disease, pain management, and diabetes.
China Plus One is a business strategy that aims to avoid solely investing in China and instead expand into other nations.
Early this year, the government also approved a production linked incentive (PLI) plan of Rs 6,940 crore ($955 million) to encourage domestic production of important starting materials, pharmacological intermediates, and active pharmaceutical ingredients (APIs).
Since FY19, the Indian API market has grown at a constant rate of 9.1% and is predicted to rise at a compound annual growth rate (CAGR) of 9.6% from 2021 to 2026, exceeding global market growth.
According to the company’s management, this is due to a greater focus on fresh geographies in the global pharmaceutical sector, a transition to specialty segments, and strong local demand.
