IPO Alert: Glenmark Life Sciences opens on 27 July 2021

Blog | IPO

In a pandemic-hit year, pharma companies provided investors with a safe haven. This trend is expected to continue going forward as healthcare takes centre stage globally. At a time when the demand for pharma products is set to rise, Glenmark Life Sciences is set to hit the stock markets. We bring you all the important details about the IPO.  

Key details

  • IPO size: ₹1,498–₹1,514 crore
  • Fresh issue: ₹1,060 crore
  • Price band: ₹695–₹720 per share
  • Lot size: 20 shares
  • Cost per lot: ₹14,400
  • Issue opens: 27 July 2021
  • Issue closes: 29 July 2021
  • Basis of allotment date: 03 August 2021 
  • Initiation of refunds: 04 August 2021
  • Credit of shares to demat account: 05 August 2021
  • Expected listing date: 06 August 2021

About Glenmark Life Sciences

Incorporated in 2011, Glenmark Life Sciences is a wholly-owned subsidiary of Glenmark Pharmaceuticals. It is a leading developer and manufacturer of active pharmaceutical ingredients (API) in chronic therapeutic areas including cardiovascular disease, central nervous system disease, pain management and diabetes.

The company’s key business vertical is generic API, which contributes around 91% of the revenue. The remaining 9% of the revenue includes 8% from contract development and manufacturing operations (CDMO) to multinational and specialty pharma companies and 1% from other operating income.

Headquartered in India, Glenmark Life Sciences has a diversified portfolio of products and customers. The company has developed 120 molecules, which it sells in India, Europe, Latin America, North America, Japan and the rest of the world. Of the 20 largest generic pharma companies in the world, 16 are customers of Glenmark Life Sciences.

This has helped the company deliver strong financial performance over the years. The company’s revenue and net profit have grown at a CAGR of 45% and 34%, respectively, during FY19–21.     

About the issue

The IPO size is 1,513 crore. Of which, the fresh issue is ₹1,060 crore. The funds will be used for the payment of outstanding purchase consideration to Glenmark Pharmaceuticals for the spin-off of the API business as well as funding capex and general corporate purpose. The remaining ₹453 crore will be the offer for sale.

IPO allocation quota

QIB NIB Retail
50% 15% 35%

To know more about the IPO, read its red herring prospectus here. The issue opens on 27 July 2021 and you can subscribe to Glenmark Life Sciences with Upstox here. Meanwhile, we’ll keep you posted on all the updates about this IPO and the public issues that follow, so stay tuned!