1 min read.Updated: 21 Jul 2021, 11:59 AM ISTLivemint
Glenmark Pharma will now sell 63 lakh shares as compared to its earlier proposal of 73 lakh shares in Glenmark Life's offer for sale (OFS)
Glenmark Life Science's initial public offering (IPO) will open for bidding on July 27 and will close on July 29. The price band for the share sale has been fixed at ₹695-720 per share. Glenmark Life's IPO size has been reduced as it will now consist of a fresh issue of ₹1,060 crore and offer for sale (OFS) of up to 63 lakh shares by its parent company.
Glenmark Pharmaceuticals will now sell 63 lakh shares in its API (active pharmaceutical ingredient) subsidiary Glenmark Life as compared to its earlier proposal of 73 lakh shares for OFS. Therefore, the fresh issue for Glenmark Life is reduced to ₹1,060 crore from ₹1,160 crore planned earlier, as per the details laid out by the company.
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.
Proceeds from the fresh issue will be used for the payment of outstanding purchase consideration to the promoter for the spin-off of the API business.
Glenmark Pharma on Tuesday in an exchange filing said that Glenmark Life Sciences has filed its RHP (red herring prospectus) with the Registrar of Companies, Pune. It holds 100% stake in Glenmark Life Sciences.
Glenmark Life Science is a leading developer and manufacturer of select high value, non-commoditized active pharmaceutical ingredients in chronic therapeutic areas, including cardiovascular disease, central nervous system disease, pain management and diabetes. For the year ended March 31, Glenmark Life had revenues of ₹1,537 crore and net profit of ₹314 crore.
Elite Wealth has a positive outlook of the firm, citing leadership in Select High Value, Non-Commoditized APIs in Chronic Therapeutic Areas, Strong Relationships with Leading Global Generic Companies, Quality-Focused Compliant Manufacturing and R&D Infrastructure.