The initial public offering (IPO) of Glenmark Life Sciences Limited opened for subscription today and will remain open for tender until July 29th ₹695-720 per share. The scope of the IPO has been reduced as it now consists of a new issue of ₹1,060 crore and offer for sale (OFS) of up to 63 lakh shares through its promoter Glenmark Pharma. The company aims to increase ₹1,515 crore from his share sale.
As of 11:40 a.m. on the first day of the submission of the offer, Glenmark Life’s IPO was fully subscribed to 1.07 times, led by the positive response from private investors. The portion reserved for private individuals was subscribed 2.06 times, while the portion for non-institutional investors (NIIs) and qualified institutional buyers (QIBs) was subscribed 0.15 times and 0.00 times, respectively, like BSE data showed.
According to market watchers, Glenmark Life stocks were trading at a premium of. available ₹110 on the gray market. The gray market is an unofficial platform on which trading begins after the IPO price range has been announced until the IPO shares are listed. The expected IPO is August 6th.
A statement from ICICI Direct stated: “GLS has performed well and has a clean track record in regulation. The company is also a leading developer and manufacturer of selected high-quality, non-commercially available active ingredients for chronic therapies and works with 16 of the 20 largest generic companies worldwide. The growth momentum also has a strong undercurrent of the global growth of the API industry. We recommend subscribing to the issue. ”
” The company has a ROCE of 46.7%, which is better than its competitors like Divis Labs, at an upper price range of ₹720 company has a PE of 22.38, which is better than any API manufacturer. Overall, the company’s valuations are very attractive and we expect very good stock market growth of around 25 to 35%. We have a positive outlook on the IPO of Glenmark Life Science, ” said Yash Gupta, Equity Research Associate at Angel Broking.
Kotak Mahindra Capital Company, BofA Securities India and Goldman Sachs (India) Securities Private Limited are the global coordinators and book running lead managers of the offering. DAM Capital Advisors Limited (formerly known as IDFC Securities Limited), BOB Capital Markets Limited and SBI Capital Markets Limited are the book running lead managers of the offering.
Glenmark Life is a manufacturer of selected high quality, non-commercially available active pharmaceutical ingredients (APIs) in chronic therapeutic areas. Glenmark Pharma holds 100% of the shares in Glenmark Life Sciences. For the fiscal year ending March 31, the company achieved sales of ₹1,537 crore and net profit of ₹314 million euros.
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