27 Jul , 2021 By : Kanchan Joshi
Glenmark Life Sciences Limited's initial public offering (IPO) opens for subscription today and will be opened for bidding till July 29. The price band for the initial share sale is fixed at Rs695-720 per share. Its IPO size has been reduced as it will now consist of a fresh issue of Rs1,060 crore and offer for sale (OFS) of up to 63 lakh shares by its promoter Glenmark Pharma. The company is aiming to raise Rs1,515 crore through its share sale.
As per market observers, Glenmark Life shares were available at a premium of Rs110 in the grey market. The grey market is an unofficial platform, wherein trading starts after the announcement of IPO price band till the listing of IPO shares. The expected date of listing on the stock exchanges is August 6.
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 Rs720 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 Rs1,537 crore and net profit of Rs314 crore.
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