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Home >Markets >Stock Markets >Glenmark Life Sciences shares make a tepid debut

Glenmark Life shares today edged higher on debut on the Indian stock markets, rising to 751per share, a premium over issue price of 720 apiece. The stock touched a high and a low of 800 and 737, respectively.

The initial public offer (IPO) of Glenmark Life Sciences was subscribed 44.17 times on the closing day of subscription. Its price range was at 695-720 per share. Its IPO size 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.

Glenmark Life Sciences, a subsidiary of Glenmark Pharmaceuticals, is a leading developer and manufacturer of select high-value, non-commoditised active pharmaceutical ingredients (APIs) in chronic therapeutic areas, including cardiovascular disease, central nervous system disease, pain management, and diabetes. The company also manufactures and sells APIs for gastro-intestinal disorders, anti-infectives, and other therapeutic areas.

Many brokerages had assigned a subscribe rating to the issue considering the business growth outlook and almost stable operating margins. ''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,'' ICICI Direct had said in a note.

''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..,'' Yash Gupta, Equity Research Associate, Angel Broking had said.

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