20 Jul , 2021 By : Kanchan Joshi
Mumbai: Glenmark Life Sciences Ltd's initial public offering will open on 27 July and close on 29 July, its parent Glenmark Pharmaceuticals Ltd on Tuesday said in a notice to exchanges.
Glenmark Life Sciences is in the business of manufacturing active pharmaceutical ingredients (API). Its portfolio comprises 120 products. Currently, Glenmark Pharma holds a 100% stake in the company.
The IPO will consist of a fresh issue of Rs1060 crore and an offer for sale of up to 6.30 million shares by Glenmark Pharmaceuticals Ltd.
Earlier, it had planned to raise Rs1160 crore via a fresh issue and an offer for sale of up to 7.31 million shares by its promoter.
The anchor investor bid will start on 26 July, and it may be listed on exchanges on 6 August.
Goldman Sachs, Kotak Mahindra Capital, Bofa Securities, DAM Capital, BoB Caps and SBI Capital Markets are the lead managers to the issue.
Proceeds from the fresh issue worth Rs900 crore will be used for the payment of outstanding purchase consideration to the promoter for the spin-off of the API business. The remaining Rs152.76 crore will be used for funding capital expenditure requirements.
The company depends on API business and for the fiscal 2020 and 2019, its API operations contributed 84.16% and 89.87% of its total revenue from operations respectively.
For the fiscal year 2020, the total income of the company stood at Rs1549.30 crore versus Rs886.87 crore a year ago. Net profit for the period stood at Rs313.10 crore against Rs195.59 crore last year. As of December 2020, net debt of the company stood at Rs947.44 crore.
Glenmark Life Science manufactures select high-value, non-commoditized APIs in chronic therapeutic areas, including cardiovascular disease, central nervous system disease, pain management, and diabetes.
As of December 2020, the company had a portfolio of 120 molecules globally and sold our APIs in India and exported our APIs to multiple countries in Europe, North America, Latin America, Japan, and the rest of the world. As of 7 April 2021, the company had filed 399 drug master files and certificates of suitability to the monographs of the European Pharmacopoeia across various major markets.
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