Glenmark Life Sciences IPO Review: The Glenmark Life Sciences IPO will be the fifth IPO to hit the Indian markets this month. The IPO will open from July 27th to July 29th. They aim to raise Rs. 1,513.60 crores.
In this article, we look into important information on the Glenmark Life IPO and find out the possible prospects of the company.
Table of Contents
Glenmark Life Sciences IPO Review – About the Company
Founded in 2011 Glenmark Life Sciences is a subsidiary of Glenmark Pharmaceuticals. Glenmark Life Sciences develops, manufactures, and supplies Active Pharmaceutical Ingredients (APIs). These APIs are used for cardiovascular disease (CVS), central nervous system (CNS) disease, pain management, and diabetes.
The company also manufactures APIs for gastro-intestinal disorders, anti-infectives, and other therapeutic areas.
They have a product portfolio of over 120 products which contributes to 90% of its revenues.
The company has 4 manufacturing facilities. These are situated in Ankleshwar and Dahej in Gujarat and Mohol and Kurkumbh in Maharashtra. Put together the company has an aggregate installed capacity of 725.8 KL as of December 31, 2020.
The company has several advantages one of them being the relationships it has developed with global pharmaceutical companies. These companies have further helped them expand their reach outside India.
Glenmark Life Sciences products are exported to Asia, Europe, Latin, and North America, etc.
Its listed competitors in the industry include:
Grey Market Premium of Glenmark Life Sciences IPO
The shares of Glenmark Life Sciences were trading at around a 25-30% premium in the grey market before the IPO. The shares traded at a premium of around Rs. 200 over their issue price band of Rs 695-720 per share.
Glenmark Life Sciences IPO Review – Key IPO Information
Glenmark Pharmaceuticals Ltd. is the promoter of the company. They have appointed Goldman Sachs (India) Securities Private Ltd, SBI Capital Markets, Kotak Mahindra Capital Company, BofA Securities India Ltd., DAM Capital Advisors Ltd., and BoB Capital Markets as lead managers to the issue.
KFintech Pvt. Ltd. has been appointed as the registrar of the issue.
| Particulars | Details |
|---|---|
| IPO Size | ₹1,513.60 Cr |
| Fresh Issue | ₹1,060.00 Cr |
| Offer For Sale(OFS) | ₹453.60 Cr |
| Opening Date | Jul 27, 2021 |
| Closing Date | Jul 29, 2021 |
| Face Value | ₹2 per equity share |
| Price Band | ₹695 to ₹720 per equity share |
| Lot Size | 20 Shares |
| Minimum Lot Size | 1 |
| Maximum Lot Size | 13 |
| Listing Date | Aug 6, 2021 |
Purpose of the Glenmark Life IPO
Glenmark Life Sciences has decided to opt for an IPO for the following purpose:
- For payment of outstanding purchase consideration to the promoter for the spin-off of the API business.
- To finance capital expenditure.
- For general corporate purposes.
In Closing
The IPO opens on 27th July and closes on 29th July 2021. For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of Glenmark Life.
Indian API producers are currently facing huge growth prospects. This is due to global policy post the pandemic to also rely on countries other than China for manufacture and production. This could be an opportunity for investors.
In addition to that, Glenmark Life Sciences is priced at a PE (price-earnings ratio) of 22.38 making it cheaper than available API competitors.
That’s all for this post. Do let us know what you think of the Glenmark Life IPO review. Are you planning to apply for this IPO or not? Comment below. Happy Investing!
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.
