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Glenmark Life Sciences IPO opens; here are the key things to know

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Glenmark Life Sciences IPO comprises a fresh issue of 1.47 crore equity shares and an offer for sale of up to 63 lakh equity shares by promoter Glenmark Pharmaceuticals.

Glenmark Life Sciences IPO opens; here are the key things to know
The initial public offering (IPO) of Glenmark Life Sciences opened for subscription on Tuesday. The company is an active pharmaceutical ingredients (API) arm of Glenmark Ltd. The Rs 1,513.6-crore IPO has a price band of Rs 695-720 per share and will close on July 29.
Kotak Mahindra Capital Company, BofA Securities India and Goldman Sachs (India) Securities are the global co-ordinators and book-running lead managers to the offer.
Here are the key things to know before investing in the issue:
  • Glenmark Life Sciences IPO comprises a fresh issue of 1.47 crore equity shares and an offer for sale of up to 63 lakh equity shares by promoter Glenmark Pharmaceuticals.
  • The price band for the public offer has been fixed at Rs 695-Rs 720 per equity share. The company plans to raise Rs 1,513.6 crore at the higher end of the price band.
  • The offer will open for subscription on July 27 and will close on July 29, 2021.
  • 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.
  • The market lot size for the issue is 20 shares. A retail-individual investor can apply for up to 13 lots.
  • The company has reserved up to 50 percent of the offer for qualified institutional buyers, up to 15 percent for non-institutional bidders, and up to 35 percent for retail individual bidders.
  • Kotak Mahindra Capital Company, BofA Securities India and Goldman Sachs (India) Securities are the global co-ordinators and book-running lead managers to the offer.
  • DAM Capital Advisors, BOB Capital Markets and SBI Capital Markets are also the book running lead managers to the offer.
  • The equity shares are proposed to be listed on BSE and NSE.
  • About Glenmark Life Sciences
    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.
    It currently operates four multi-purpose manufacturing facilities which are situated on leasehold properties located at Ankleshwar and Dahej in the state of Gujarat, India, and Mohol and Kurkumbh in the state of Maharashtra, India with an aggregate annual total installed capacity of 726.6 KL as of March 31, 2021.
    The company intends to increase its API manufacturing capabilities by enhancing the existing production capacities at its Ankleshwar facility during the financial year 2022 and its Dahej facility during the financial years 2022 and 2023 by an aggregate annual total installed capacity of 200 KL.
    As of March 31, 2021, Glenmark Life Sciences had a portfolio of 120 molecules globally and sold their APIs in India and exported their APIs to multiple countries in Europe, North America, Latin America, Japan and the rest of the world (ROW).
    Financials
    Glenmark Life Sciences reported a net profit of Rs 351.58 crore and revenue of Rs 1,885.16 crore in FY21, against a profit of Rs 313.09 crore and a revenue of Rs 1,537.31 crore in FY20. Profit in the financial year FY19 stood at Rs 195.59 crore on revenue of Rs 886.42 crore.
    Source: ICICI Direct
    Promoters & Management
    Glenmark Pharmaceuticals is the promoter of the company and holds 100 percent of the pre-offer stake in Glenmark Life.
    Glenn Saldanha is the chairman and non-executive director of the company. VS Mani is a non-executive director of the company.
    Yasir Rawjee is the managing director and chief executive officer, while Sumantra Mitra is the executive director and vice president – human resources department.
    Sridhar Gorthi, Manju Agarwal, Taruvai Laxminarayanan Easwar, and Gita Nayyar are independent directors on the board.
    Bhavesh Pujara is the senior vice president and chief financial officer of the company.
    Peer Comparison
    Source: Anand Rathi
    Strengths
    • It has leadership in select high value, non-commoditised APIs in chronic therapeutic areas.
    • It has strong relationships with leading global generic companies.
    • It has quality-focused compliant manufacturing and R&D infrastructure.
    • It is focused on sustainability in operations through meaningful interventions in environment management, safety initiatives in operations and occupational health of workforce.
    • It strives to achieve cost leadership across products through careful monitoring and continuous effort.
    • It has a professional and experienced management team with a proven track record.
    • Allotment and listing
      The company's IPO share allotment is likely to be finalised around August 3, and the funds will be refunded or unblocked from ASBA account around August 4, 2021.
      Eligible investors will get their shares in their Demat accounts around August 5, and shares will be listed on the exchanges on August 6.