The bidding for the next initial public offer (IPO) of Glenmark Life Science is about to commence from 27th July 2021 and is scheduled to end on 29th July 2021. Thus, the investors who have been looking for a good investment has got this great opportunity, as various directing financial intermediaries and investment banking management firms including Goldman Sachs, BofA Securities, SBI Capital Markets, and Kotak Mahindra Capital are the leading managers to this issue. On Tuesday, 20th July 2021, the company made an announcement stating that they have registered a Red-Herring Prospectus (RHP) with the ROC (Registrar of Companies), Pune.
About Glenmark Life Science
Well, Glenmark Life Science is one of the foremost manufacturers and developers of non-commoditized active pharmaceutical ingredients (APIs) in chronic therapeutic areas that are used in curing various diseases related to the heart, central nervous system and at the same time is used in the treatment of Diabetes, gastrointestinal disorder, and Pain Management.
The operation of the company is expanded not only in India but also abroad including several countries such as North America, Europe, Latin America, Japan and others. The company has 4 manufacturing plants, two of which are situated in Gujarat named, “Dahej” and “Ankleshwar”, while the other two named, “Kurkumbh” and “Mohol” are situated in Maharashtra.
Company’s Promoters and Financials
Glenmark Pharmaceuticals has 100% holding in Glenmark Life Sciences, thus, eventually making Glenmark Life Sciences its subsidiary. For the year ended 31st March 2021:
- Total Assets: Rs. 1997. 08 crores
- Total Revenue: Rs. 1,885.98 crores
- EAT (Earings After Tax): Rs. 351.58 crores
The combined yearly installed capacity of all the above-mentioned 4 units taken together is reported to be 725.8 KL as of 31st December 2020. As per the Financial year (FY) 2021-22, the company has recorded a total operating profit of Rs. 1,886 crore and a net profit (EAT) of Rs. 352 crore.
Glenmark Life Sciences IPO Details
- Opening Date: 27th July 2021
- Closing Date: 29th July 2021
- Face Value (FV): Rs. 2/equity share
- Price (Fixed): Rs. 695 to Rs. 720/ equity share
- Size of Lot: 20 shares
- Min Order Qty: 20 shares
- Listed: NSE, BSE
- Listing Date: 6th August 2021
- Issue Type: Book Built Issue
- Issue Size: Rs. 1,513.60 Cr (@Rs.2 per share)
- Fresh Issue: Rs. 1,060. 00 Cr (@Rs.2 per share)
- Offer for Sale: 6.3 million Eq Shares @ Rs. 2
Well, talking about the IPO of Glenmark Life, the Initial Public offer contains a fresh issue of Rs.1060 crore and an offer sale of up to 6.30 million shares. Moreover, it has been reported that the shares of the company are certain to be listed on the Securities exchanges on 6th August 2021. The Securities and Exchange Board of India (SEBI) has already approved this IPO last month.
The proceeds from the IPO will be used by the company in the payment of the outstanding purchase consideration to the promoter for the spin-off of the Active Pharmaceutical ingredient) API business. Earlier, it was reported that the company is planning to sale of up to 7.30 million shares, however later the fresh issue of Rs. 1160 crore was reduced to Rs. 1060 crore. Moreover, the price of the freshly issued shares is fixed between Rs. 695 to 720 per share.
