The initial public offering of Glenmark Life Sciences, a subsidiary of Glenmark Pharmaceuticals, will open for subscription next week on July 27 and close on July 29, 2021. In a notice to exchanges, Glenmark Pharmaceuticals reported that on July 19 By 2021, Glenmark Life Sciences had filed the RHP with the Registrar of Companies (ROC), which was registered by the ROC on July 20, 2021. The size of Glenmark Life’s initial public offering has been reduced and will now include a new issuance of capital shares worth Rs 1,060 crore and an offer for sale (OFS) of up to 63 lakh capital shares. The anchor investor offering will open one day before the IPO opening date, July 26, 2021. Glenmark Life is likely to make its debut on the stock market next month, August 6, 2021.
In the DRHP filed in April, the company had mentioned a new equity share issue of Rs 1,160 crore and an Offer for Sale (OFS) of up to 73.05 lakh of shares. Once successfully listed, Glenmark Life Sciences will join companies such as Divis Laboratories, Laurus Labs, Shilpa Medicare, Aarti Drugs and Solara Active Pharma Sciences. Glenmark Life Sciences would be the fifth initial public offering so far this month, after Clean Science and Technology, GR Infraprojects, Zomato and Tatva Chintan Pharma Chem. Gland Pharma was the last initial public offering in the pharmaceutical sector, launched last year in November.
Lead managers on the subject will be led by DAM Capital Advisors Ltd, BOB Capital Markets and SBI Capital Markets Ltd. Registrar for Glenmark Life Sciences will be KFin Technologies Private Ltd. Global Coordinators and Lead Managers on the subject are Kotak Mahindra Capital Company, BofA Securities India and Goldman Sachs (India) Securities Pvt Ltd, according to DRHP. It is proposed that the capital stock be listed on the BSE and the National Stock Exchange. The industry average PE ratio is 31.1x. And the weighted average return on equity for fiscal 2018, 2019, and 2020 is 72.05 percent.
At DRHP, filed in April this year, Glenmark Life Sciences proposed to use the net proceeds of the issuance to pay the outstanding purchase consideration to the developer for the spin-off of the developer’s API business to the company. The company has also planned to use the proceeds to fund capital expenditure requirements and general corporate purposes. The amount used for general corporate purposes cannot exceed 25 percent of the net proceeds of the new issue.