Glenmark Life Sciences received a lukewarm response from investors as its shares made a tepid market debut on Friday. The scrip listed on NSE at Rs 750 per share, a premium of 4.17 percent over its issue price of Rs 720.
On BSE, it is listed at Rs 751.10, 4.32 percent over its issue price. It touched a high of Rs 800 and a low of Rs 737 on the exchanges.
The stock climbed nearly seven percent within a few minutes of opening to Rs 768.75. At 11 am, it was trading at Rs 773.55.
The initial public offering (IPO) of the company had received a strong response from investors. It was subscribed 44.17 times on the closing day. But the final listing of shares was tepid in the backdrop of an IPO frenzy where scrips are getting listed on exchanges at high premiums.
Glenmark Life Sciences, a wholly-owned subsidiary of Glenmark Pharmaceuticals, is a manufacturer of active pharmaceutical ingredients (APIs) in several areas. These APIs are high-value and non-commoditised in chronic therapeutic areas.
APIs are ingredients in a drug or pesticide that are biologically active. The company manufactures and sells APIs for gastro-intestinal disorders, anti-infectives, and other therapeutic areas.
The issue consisted of a fresh issue of Rs 1,060 crore and an offer for sale (OFS) worth Rs 63 lakh shares by its parent company.
The brokerages had assigned a subscribe rating to the issue on the backs of a strong business growth outlook and almost stable operating margins.
The company plans to use the proceeds from the issue to complete payments of outstanding purchase consideration to the promoter for the spin-off of the API business from the promoter into the company. It also plans to use a portion to fund capital expenditure requirements and for general corporate purposes.