Glenmark Life Sciences, a wholly-owned subsidiary of Glenmark Pharmaceuticals Ltd, was incorporated in the year 2011 and is a leading developer and manufacturer of select high value, non-commercialised APIs
Glenmark Life Sciences Ltd saw a lacklustre stock market debut on Friday, with the company's shares listing at 4% premium.
The stock had opened at Rs751.10 apiece compared with its issue price of Rs720 a share. It touched a high and a low of Rs768.75 and Rs737.35, respectively.
The initial public offering (IPO), at a price band of ₹695-720 per share, was subscribed over 44 times. The offer comprised of a fresh issue of Rs1,060 crore worth of shoes and offer for sale (OFS) of up to 63 lakh shares by promoter Glenmark Pharma.
At the upper end of the IPO price band, Glenmark Life Sciences Ltd. was offered at 25.09 times its FY21 earnings, analysts said.
"Given the company’s leadership in select high value non-commercialised APIs in chronic therapeutic areas, cost leadership, strong management, strong balance sheet, growing business, high RoNW of 46.71% in the fiscal ended March 31, 2021 and reasonable valuations; (we are positive on the firm," brokerage firm Anand Rathi said in a note to its investors.
Glenmark Life Sciences, a wholly-owned subsidiary of Glenmark Pharmaceuticals Ltd, was incorporated in the year 2011 and is a leading developer and manufacturer of select high value, non-commoditisd active pharmaceutical ingredients (APIs) in chronic therapeutic areas, including cardiovascular disease (CVS), central nervous system disease (CNS), pain management and diabetes.
Proceeds from the fresh issue worth Rs900 crore will be used to pay outstanding purchase consideration to the promoter for the spin-off of the API business. The remaining amount will be used for funding capital expenditure requirements.
As of March 2021, the company had a portfolio of 120 molecules globally and sold APIs in India, with exports Europe, North America, Latin America, Japan and the rest of the world. As of May, the company had filed 403 Drug Master Files (“DMFs") and certificates of suitability to monographs of the European Pharmacopoeia (“CEPs") across various major markets.