Glenmark life sciences IPO to raise Rs 1,060 crore , fixed at Rs 695 to 750
The IPO comprises a fresh issue of Rs 1,060 crore and an offer for sale of 63 lakh equity shares by promoter Glenmark PharmaceuticalsAuthor : Sheetal Mahajan
The year 2021 has already seen 35 initial public offerings (IPO) on exchanges, there are many more in the queue. Glenmark Pharmaceuticals’ subsidiary Glenmark Life Sciences is next in line to launch its initial share sale.
The company has announced to raise ₹1,060 crore through the IPO.Glenmark Life Sciences, the subsidiary of pharma major Glenmark Pharmaceuticals, will open its initial public offering for subscription on July 27. This is the 29th public offering to hit Dalal Street in the current year 2021.
The price band for the offer, which will close on July 29, has been fixed at Rs 695-720 per equity share.
Goldman Sachs, Kotak Mahindra Capital, BoFa Securities, DAM Capital, BoB Caps and SBI Capital Markets are the lead managers to the issue. The expected date of listing date on the stock exchanges is August 6. The firm had gotten nod from market regulator Securities and Exchange Board of India (SEBI) last month to float its IPO.
Glenmark Life Science is a leading developer and manufacturer of select high value, non-commoditised APIs in chronic therapeutic areas, including cardiovascular disease, central nervous system disease, pain management and diabetes, the company mentioned in DRHP filings.
It currently operates four multi-purpose manufacturing facilities which are situated on leasehold properties located at Ankleshwar and Dahej in Gujarat and Mohol and Kurkumbh in Maharashtra.
The company will utilise fresh issue proceeds for payment of outstanding purchase consideration to the promoter for the spin-off of the API business from the promoter into the company pursuant to the Business Purchase Agreement dated October 9, 2018 (Rs 800 crore), and funding capital expenditure requirements (Rs 152.76 crore).
Investors can bid for a minimum of 20 equity shares and in multiples of 20 equity shares there after up to 50 percent of the total offer is reserved for qualified institutional buyers, 35 percent for retail investors, and 15 percent for non-institutional investors.
Glenmark Life is a leading developer and manufacturer of select high value, non-commoditized active pharmaceutical ingredients (APIs) in chronic therapeutic areas, including cardiovascular disease (CVS), central nervous system disease (CNS), pain management and diabetes. The company also manufactures and sells APIs for gastro-intestinal disorders, anti-infectives and other therapeutic areas.
The company has strong market share in select specialized APIs such as Telmisartan (anti-hypertensive), Atovaquone (anti-parasitic), Perindopril (antihypertensive), Teneligliptin (diabetes), Zonisamide (CNS) and Adapalene (dermatology)
It is also icreasingly providing contract development and manufacturing operations (CDMO) services to a range of multinational and specialty pharmaceutical companies.
In 2019, the API manufacturing business of Glenmark Pharma was sold and spun off into Glenmark Life Sciences as part of a broader reorganization designed to place Glenmark Pharma on an accelerated trajectory to attain its objectives in three different verticals, with Glenmark Life focusing on the API business. Following the spin-off, Glenmark Life operates as an independent, professionally-managed global API business.