1 min read.Updated: 29 Jul 2021, 01:15 PM ISTLivemint
Glenmark Life IPO price band is fixed at ₹695-720 per share
Its IPO consists of a fresh issue of ₹1,060 crore and offer for sale (OFS) of up to 63 lakh shares by its promoter Glenmark Pharma
Glenmark Life Sciences Limited's initial public offering (IPO) opened for subscription on Tuesday and will be opened for bidding till July 29. The price band for the initial share sale is fixed at ₹695-720 per share. Its 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 promoter Glenmark Pharma.
As of 1:10 pm on its final day of bidding, Glenmark Life IPO has been oversubscribed over 14 times. Retail portion has been booked 12 times whereas non-institutional investors (NIIs) 32 times and Qualified Institutional Buyers (QIBs) 4 times.
As per market observers, Glenmark Life shares are available at a premium of ₹130 in the grey market. The expected date of its shares listing on the Indian stock exchanges is August 6. The company is aiming to raise ₹1,515 crore through its share sale.
ICICI Direct in a note said, ''GLS has a good performance execution and clean regulatory track record. The company is also a leading developer and manufacturer of select high value, non-commoditised APIs in chronic therapies and works with 16 of the 20 largest generic companies globally. The growth momentum also has a strong undercurrent of global API industry growth. We recommend Subscribe to the issue.''
''The company has a ROCE of 46.7% which is better than its peers like Divis labs, at an upper price band of ₹720 company is priced at PE of 22.38 which is better than all the API manufacturing companies. Overall company's valuations are very attractive and we expect very good listing gains of around 25%-35%. We have a positive outlook on Glenmark Life science IPO,'' Yash Gupta, Equity Research Associate, Angel Broking said.
Kotak Mahindra Capital Company, BofA Securities India and Goldman Sachs (India) Securities Private Limited are the global co-ordinators and Book Running Lead Managers to the Offer. DAM Capital Advisors Limited (Formerly known as IDFC Securities Limited), BOB Capital Markets Limited and SBI Capital Markets Limited are the Book Running Lead Managers to the Offer.
Glenmark Life is a manufacturer of select high value, non-commoditized active pharmaceutical ingredients (APIs) in chronic therapeutic areas. Glenmark Pharma holds 100% stake in Glenmark Life Sciences. For the year ended March 31, the company had revenue of ₹1,537 crore and net profit of ₹314 crore.