Glenmark Life Sciences Limited IPO Details

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
Glenmark IPO

Glenmark Life Sciences IPO: Key Details

  • Grey Market Premium (GMP) today: 140 – 145

Note: We neither trade nor encourage our readers to trade in the Grey Market. We share the GMP information for educational purposes only, so that, you can make an informed decision.

Company Information

Glenmark Life Sciences Limited, incorporated in 2001, is a wholly-owned subsidiary of Glenmark Pharmaceuticals Limited (“Glenmark”). In 2019, the API manufacturing business of Glenmark was sold and spun off into a Company as part of a broader reorganization, with Glenmark Life Sciences Company focusing on the API business.

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

Their API portfolio comprises specialized and profitable products, including niche and technically complex molecules. They are also increasingly providing contract development and manufacturing operations(“CDMO”) services to a range of multinational and specialty pharmaceutical companies. As of March 31, 2021, they had a portfolio of 120 molecules globally and sold APIs in India, and abroad. 16 of the 20 largest generic companies globally were its customers.

Competitive Strengths

  • Leadership in Select High Value, Non-Commoditized APIs in Chronic Therapeutic Areas
  • Strong Relationships with Leading Global Generic Companies
  • Quality-Focused Compliant Manufacturing and R&D Infrastructure
  • Strong Focus on Sustainability in Operations
  • Cost Leadership across Products through Careful Monitoring and Continuous Effort
  • Experienced Management Team with Proven Track Record

Company Strategy

  • Expand the Geographic Focus, API Portfolio and Scope of Operations
  • Grow the Contract Development and Manufacturing Operation (CDMO) Business
  • Expand its Production Capacities
  • Improving Financial Performance through Focus on Operational Efficiencies

Proceeds from Glenmark Life Sciences IPO will be used to:

  • Payment of outstanding purchase consideration to the Promoter for the spin-off of the API business from the Promoter into the Company pursuant to the Business Purchase Agreementdated October 9, 2018
  • Funding capital expenditure requirements
  • General corporate purposes

Glenmark Life Sciences IPO: Financials

201920202021
Revenue from Ops₹886.42 Cr₹1537.31 Cr₹1885.17 Cr
Profit before Excep*₹228.30 Cr₹421.07 Cr₹470.94 Cr
Profit after Tax195.59 Cr₹313.10 Cr₹351.58 Cr
EPS (Basic)24.6429.0432.61
*Tax and Exceptional Items
As of March 2020EPS (Avg*)P/E (Floor)P/E (Cap)
Based on basic EPS30.0923.1023.93
* Weighted Average for last 3 years

Comparison with listed industry peers

CompanyP/E (Cap)
Glenmark Life Sciences23.93
Highest (Divis Lab.)63.65
Lowest (Aarti Drugs)24.28
Sector Avg36.74

Glenmark Life Sciences IPO Dashboard

Issue Details

TypeValue
Issue Size₹1,513.6 Cr
Fresh Issue₹1,060.00 Cr
Offer for Sale₹453.60 Cr
Face Value₹2/- per Equity Share
IPO Price₹695 – ₹720
Lot Size20 shares
LotsMin 1 – Max 13

Key Dates

Date TypeDate
Bid Open27/07/2021
Bid Close29/07/2021
Allotment Finalization03/08/2021
Initiation of Refunds04/08/2021
Credit of Shares05/08/2021
Listing Date06/08/2021

Lot Size and Price

LotsSharesAmount
120₹14,440
14260₹1,87,200

Promoter Holding

HoldingPercentage
Pre-Issue100 %
Post-Issue82.8 %

Glenmark Life Sciences IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB50%42,42,379 shares
NII15%32,32,770 shares
RII (Retail)35%75,43,130 shares
Total100%1,50,18,279 shares

Glenmark Life Sciences IPO: Risks

  • Any manufacturing or quality control problems may subject the company to regulatory action, and damage to reputation
  • Business is dependent on the sale of its products to key customers
  • A significant portion of the revenue is derived from the API business, of which a limited number of therapeutic categories and key products generate a significant portion of the total revenue
  • Manufacturing and R&D facilities are located in the Indian states of Gujarat and Maharashtra. A slowdown or shutdown in manufacturing operations could have an adverse effect.
  • Any delay, interruption or reduction in thesupply of raw materials to manufacture products may adversely affect the business

For complete internal and external risk factors, you can refer to the RHP of the company.

Glenmark Life Sciences IPO: Registrar and Lead Managers

Registrar of the Issue

KFintech (Formerly Karvy)

Selenium Tower B, Plot 31 & 32,
Financial District, Nanakramguda, Serilingampally Mandal,
Hyderabad, Telangana India – 500 032.

Phone: 1-800-309-4001
Email: [email protected]

Lead Managers of the Issue

Kotak Mahindra Capital Company Limited
BofA Securities India Limited
DAM Capital Advisors Limited
Goldman Sachs Securities Private Limited
BOB Capital Markets Limited
SBI Capital Markets Limited

Phone: +91 22 6632 8000 / +91 22 4336 0000
Email: [email protected]

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