Glenmark Life Sciences Limited opened its initial public offering (IPO) of Rs 1,514 crore on July 27 and closed its subscription on July 29, 2021. The IPO saw very robust participation from its investors in the retail segment, the Qualified Institutional Buyers (QIBs) and Non-Institutional Investor (NII) category. By the end of the subscription day on July 29 at around 17:00 IST, the IPO was subscribed a total of 44.17 times as per information on Chittorgarh. The company was incorporated in 2011. It is one of the leading manufacturers of Active Pharmaceutical Ingredients (APIs). The company develops, manufactures, and supplies high-quality APIs for cardiovascular disease (CVS), central nervous system disease (CNS), pain management, diabetes, gastrointestinal disorders as well as anti-infectives to name a few areas that it is active in. The company has a market in India as well as abroad in Europe, North America, Latin America and Japan.
Here is a recap of everything you need to know about the Glenmark Life Sciences IPO
Glenmark Life Sciences IPO Overview
The Glenmark IPO had an issue size of Rs 1,513.60 crore. The company’s issue consisted of a Fresh Issue that aggregated up to Rs 1,060 crore. It was also made up of an Offer for Sale (OFS) that aggregated up to Rs 453.60 crore with approximately 6,300,000 equity shares at Rs 2 per share as the face value.
Glenmark Life Sciences Grey Markey Premium (GMP)
The issue had an initial IPO of Rs 150 on the last day of subscription. As of July 30, however, the GMP stood at Rs 145. When considering this against the IPO’s price band of Rs 695 to Rs 720 per equity share, it indicated that the IPO’s premium was trading at Rs 840 to Rs 865 on the unlisted market. This also indicated a fluctuation in the GMP over the course of the IPO as the GMP on July 29, was Rs 140.
Glenmark Life Sciences IPO Allotment, Listing Date
The Glenmark Life Science IPO is set to see the Allotment happen on August 3, 2021. On the next day, the refunds for the unlucky bidders will take place as their funds are returned to them. On August 5, the accreditation of shares to the successful bidders’ Demat accounts will take place. For the eager investors who wish to see the company list, the listing date is tentatively set for August 6, though this cannot be confirmed as a final date as of yet.
Glenmark Life Sciences IPO Subscription Status (Club Lot Size and Subscription)
The Lot size range started at 20 shares with Rs 14,400 as the minimum application amount. On the higher end, the application amount stood at Rs 187,200 with 260 shares as the upper limit. The Retail investors of the issue had an allotment of 35 per cent and they were subscribed a total of 14.63 times. On the other hand, the QIBs were subscribed to the issue 36.97 times against an allotment reservation of 50 per cent. The NII category had a reservation of 15 per cent and they had subscribed to the issue a total of 122.54 times.
Speaking on Glenmark Life Science’s growth prospects, Ajit Mishra the VP of Research at Religare Broking said, “The global API market is expected to grow at a CAGR of 6.2% to reach about USD 259.3bn by 2026 from USD181.3bn in 2020. The growth will be driven by innovative therapeutic drugs by various pharmaceutical and biotechnology companies. The rising prevalence of chronic disorders, increasing demand for personalized medicine and emergence of novel drug delivery devices are some of the key factors expected to drive the API market over the next five years. Further, the market of 120 products globally, (wherein GLSL is present) is expected to grow at a CAGR of 6.8% and reach USD 211bn by 2026, largely driven by the rising prevalence of non-communicable diseases and growing demand from the regulated markets for drugs.”
He went on to add, “It has strong relationships with leading global generic pharmaceutical companies that have helped them expand its product offerings and geographic reach. Further, its R&D laboratories focus on new product development and complex molecules, cost improvement programs and process improvements which augur well for the growth. Going forward, the company plans to diversify the customer base by increasing geographic market coverage, grow the CDMO business along with API and improve operating efficiency. On the financial front, its performance has been strong. We have a positive view on the company from the long-term perspective.”