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This article is more than 1 month old.

Glenmark Life Sciences IPO day 2: Issue subscribed 5.43 times so far; retail portion booked 9 times

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Glenmark Life Sciences IPO received bids for 8.15 crore equity shares against the IPO size of 1.50 crore equity shares.

Glenmark Life Sciences IPO day 2: Issue subscribed 5.43 times so far; retail portion booked 9 times
The initial public offering (IPO) of Glenmark Life Sciences has been subscribed 5.43 times so far on July 28 - the second day of bidding. The offer received bids for 8.15 crore equity shares against the IPO size of 1.50 crore equity shares, according to data available on the exchanges.
The portion set aside for retail investors was subscribed 9.06 times, while that for non-institutional investors is subscribed 3.12 times. Qualified institutional buyers' portion has received 75 percent subscription, till 4:30 pm.
The IPO size has been reduced to 1.5 crore equity shares after the company garnered Rs 454 crore from anchor investors on July 26, a day before the opening of the issue.
The company has decided to allocate 63,06,660 equity shares to 19 anchor investors at Rs 720 a share, aggregating to Rs 454 crore, according to a regulatory filing.
The issue, which will close on July 29, comprises fresh issuance of 1.47 crore equity shares (worth around Rs 1,060 crore) and an offer for sale of up to 63 lakh shares by its parent company Glenmark Pharmaceuticals. The price band for the issue is Rs 695-720 per share.
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Glenmark Life Sciences, a wholly-owned subsidiary of Glenmark Pharmaceuticals, is a developer and manufacturer of select high-value, non-commoditised active pharmaceutical ingredients (APIs) in chronic therapeutic areas, including cardiovascular disease (CVS), central nervous system disease (CNS), pain management, and diabetes.
The company will utilise the proceeds for the payment of outstanding purchase consideration to the promoter for the spin-off of the API business from the promoter into the company, according to the Business Purchase Agreement (BPA) (Rs 800 crore), funding capital expenditure requirements (Rs 152.76 crore), and for general corporate purposes.
Analysts are positive on Glenmark Life Sciences' IPO citing reasonable valuations and the company's firm positioning in the API market.