Glenmark Life Sciences IPO

 

Glenmark Life Sciences Private Limited is in the industry of maximizing the potential of science to create high-quality medicines. They’ve built good alliances with major international generic pharmaceutical corporations over the decades which has enabled us to broaden their drug portfolio and geographic scope. Glenmark Life Sciences IPO will hit the market in 27 july 2021.

Services

They partner with 16 of the top 20 generic pharmaceutical firms in the world. They combine creativity and operational efficiency to meet the expectations of service, stability, and reliable product accessibility with 120 APIs in their portfolio.

They offer high standard APIs to more than 540 healthcare firms in numerous nations, thanks to their vast, world-class production and research facilities.

What they Do?

They are an API provider focusing on committed research and development (R&D) in both their current products and fields where they understand there is significant expansion opportunity.

Establishing high values of system innovation and performance in their R&D and production activities, they feel, is vital to their reputation and the development of long-term client associations.

From research and development through scale-up, production, and distribution, They work through the whole value chain.

Together, they enable them to assist their clients during the product creation and corporatisation process, as well as during the life cycle planning process.

Distribution

Using state-of-the-art research facilities and production facilities, they have gradually increased the size of their product range and scope. They serves to clients in North America, Europe, Japan, Latin America, India, and the Rest of the World.

To remain ahead of the trend, They carefully combine science, technology, and economics in everything we do, from product choice and growth to commercial exploitation. Chronic therapeutic fields include cardiovascular illness, central nervous system disorders, pain control, diabetes and many others.

Future Plans

They plan to expand our API industrial capacity by adding 200 KL to their current production abilities at their Ankleshwar site in fiscal year 2022 and their Dahej facility in fiscal years 2022 and 2023.

This increased manufacturing capacity will allow us to extend the generic API output as well as their cancer product pipeline.

From the financial year 2022 onwards, they plan to build a new production plant in India for the production of generic APIs, which is scheduled to be functional in the fourth quarter of the financial year 2023.

Glenmark Life Sciences IPO

Glenmark Life Sciences, headquartered in Solapur (Maharashtra) has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 10,60  crore (Fresh Issue) and OFS of 6,300,000 equity shares on 16 April, 2021.

The Offer includes a fresh equity of Rs.1,060 crore and an offer for sale(OFS) up to 6,300,000 equity shares of face value of 2 per share, by the promoters.

They got approval from Securities and Exchange Board of India(SEBI) on 08 June, 2021 to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Sep-20	31-Mar-20	31-Mar-19	31-Mar-18
Total Assets	1,956.57	17,25.60	1,475.40	0.09
Total Revenue	1,418.47	1,549.30	886.87	0.25
Profit After Tax	246.90	313.10	195.59	(0.43)

Basic and Diluted Earnings Per Share (EPS)

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2020	29.04	29.04	3
Financial Year 2019	24.64	24.64	2
Financial Year 2018	(7.89)	(7.89)	1
Weighted Average	21.42	21.42
(9 months) Dec. 31, 2020	22.90	22.90	–

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of The offer

1. In chronic therapeutic fields, leadership in a few high-value, non-commoditized APIs.
2. Close relations to the world’s biggest generic pharmaceutical businesses.
3. Infrastructure for compliant production and R&D that is quality-focused.
4. In operations, there is a strong focus on sustainability.
5. Through constant monitoring and constant work, we are able to maintain cost leadership across all products.
6. Management team has a track record of success.

Glenmark Life Sciences IPO Details

IPO Opening Date	27 July 2021
IPO Closing Date	29 July 2021
Issue Type	Book Builting
Face Value	2 per  share
IPO Price	695 to 720 per equity share
Market Lot	20
Min Order Quantity	20
Listing At	BSE, NSE
Issue Size	1515 Cr
Fresh Issue	1060 cr.
Offer for Sale	6,300,000 equity share

Glenmark Life Sciences IPO Dates

The Glenmark Life Sciences IPO date for opening is 27 July 2021, and the close date is 29 July 2021. The issue may list on 06 August 2021.

IPO Open Date	27 July 2021
IPO Close Date	29 July 2021
Basis of Allotment Date	04 August 2021
Initiation of Refunds	04 August 2021
Credit of Shares to Demat Account	05 August 2021
IPO Listing Date	06 August 2021

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimal level of 1 lot, based on availability, for every shareholder.

Glenmark Life Sciences IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Glenmark Life Sciences IPO.

Glenmark Life Sciences IPO GMP

Glenmark Life Sciences IPO Grey Market Premium is as follows and you can check GMP of other IPOs as well from links given below:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
05 August 2021	81	3600	350
04 August 2021	93	2100	250
03 August 2021	97	4100	550
02 August 2021	110	5000	600
01 August 2021	102	4500	400
31 July 2021	105	5200	550
30 July 2021	132	3100	300
29 July 2021	142	4200	450
28 July 2021	140	3000	200
27 July 2021	145	3500	400
26 July 2021	120	3200	350
25 July 2021	150	2200	250
24 July 2021	175	2500	300
23 July 2021	225	1300	200
22 July 2021	212
21 July 2021	210

Check Out The GMP Of other IPOs

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• Windlas Biotech IPO
• Nuvoco Vistas IPO
• Exxaro Tiles IPO
• Devyani International IPO

Glenmark Life Sciences IPO Review

This is IPO is majorly for long term as most of the business they do with their group company glenmark pharma. So listing gains will be decent but better to keep it in portfolio for long term.

Glenmark Life Science Risk

• Any manufacturing or quality control issues might result in legal action harm their image, and negatively impact their company, results of operations, financial position, and working capital.
• Their business relies on the sale of their products to their main clients and the loss of one or more of these customers, a decline in their financial situation or opportunities, or a decrease in their demand for their products could have a negative impact on their business.
• Gujarat and Maharashtra, India, are home to our manufacturing facilities. Their production activities might be slowed or shut down, which could have a negative impact on the company.

Other Threats

• Any suspension, slowdown, or decrease in the availability of raw materials used to make their goods may have a negative impact on their company and operating performance.
• Customer pricing influence may have an impact on their gross margin, income, and capacity to raise prices, which could have a substantially negative impact on the company, results of operations, and financial position.
• They are subject to counterparty credit risk, and any postponement or non-receipt of payments might have a negative effect on our financial performance.
• They are subject to a lot of government regulation, and if we don’t get, keep, or renew their statutory and regulatory licences and permissions, we won’t be able to run their business.

Glenmark Life Sciences IPO Brokerage views

• Yes Securities : Apply
• Choice Brokering: Apply
• Axis Securities: Apply
• IIFL Securities: Apply
• Trade swift: Apply
• Anand Rathi : Apply
• ICICI Securities: Apply

Glenmark Life Sciences IPO Peer Comparison

S. No.	Company Name	PE
1	Divis Laboratories Limited	72.97
2	Laurus Labs Limited	18.20
3	Shilpa Medicare Limited	19.65
4	Aarti Drugs Limited	11.62
5	Solara Active Pharma Sciences Limited	33.24

Glenmark life Science IPO Subscription

Date	Day	QIB	NII	Retail	Employees	Total Subscription
27 July 2021	1	0	0.88	5.3	N/A	2.84
28 July 2021	2	1.4	3.48	8.42	N/A	5.41
29 July 2021	3	37.3	125.62	15	N/A	45.08

Promoters

• Glenmark Pharmaceuticals Limited

Promoter Holding

Pre Issue Share Holding	100%
Post Issue Share Holding