The Glenmark Life Sciences IPO consists of a fresh issue of shares worth Rs 1,060 crore and an offer for sale of up to 6,300,000 equity shares by Glenmark Pharmaceuticals.
Glenmark Pharmaceutical’s API arm Glenmark Life Sciences will launch its initial public offering (IPO) on July 27. The offer will close on July 29 and is expected to list on bourses on August 6.
The IPO consists of a fresh issue of shares worth Rs 1,060 crore and an offer for sale of up to 6,300,000 equity shares by Glenmark Pharmaceuticals.
Anchor investors will start bidding on the issue on July 26, the company said in an exchange statement. Kotak Mahindra Capital, Goldman Sachs, DAM Capital, Bofa Securities, BoB Caps, and SBI Capital Markets are the lead managers of the issue.
Earlier, the company had planned to raise Rs 1,160 via a fresh issue and an offer for sale of up to 7.31 million shares.
Glenmark Life Sciences is in the business of manufacturing active pharmaceutical ingredients (API). API is any substance used in a finished pharmaceutical product. The company manufactures select high-value, non-commoditized APIs in chronic therapeutic areas, including central nervous system disease, cardiovascular disease, pain management, and diabetes.
The company is planning to use the proceeds from the listing for payment of outstanding purchase consideration to the promoter for the spin-off of the API business. It is expected to cost Rs 900 crore to the company. The company will use the remaining Rs 152.76 crore to fund its capital expenditure requirements.
In the fiscal year 2020, the company's total income stood at Rs 1,549.30 crore, against Rs 886.87 crore a year ago. Its net profit stood at Rs 313.10 crore against Rs 195.59 in the corresponding period a year ago. As of December 2020, its net debt was Rs 947.44 crore.
As of December 2020, the company has 120 products in its portfolio and sells APIs in India and exports to Europe, North America, Latin America, Japan, among others.
The company's API business contributes majorly to the revenue of the company. In 2020, it contributed 84.16 percent to the total revenue from operations, while in 2019 it contributed over 89 percent.
First Published: IST