Glenmark Life Sciences Ltd. (GLS), the subsidiary of pharma major Glenmark Pharmaceuticals Ltd., is planning to raise up to Rs 1,500 crore through an IPO. The issue, with a price band of Rs 695-720 a share will open today (July 27) and conclude on July 29.
The initial public offer (IPO) will have fresh issue of equity shares worth up to Rs 1,060 crore and sale of up to 63 lakh equity shares by Glenmark Pharma.
GLS said it has raised Rs 454 crore from anchor investors ahead of its initial share sale, which opens for public subscription on Tuesday.
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.
HSBC Global Investment Funds, Government Pension Fund Global, Oaktree Emerging Markets Equity Fund LP, Copthall Mauritius Investment Ltd -ODI account, Societe Generale-ODI, Kuber India Fund and Reliance General Insurance Company are among the anchor investors.
Proceeds from the fresh issue will be used towards payment of outstanding purchase consideration to the promoter for the spin-off of the API business and funding the capital expenditure requirements.
At the upper end of the price band, the IPO will fetch Rs 1,513.6 crore.
A few brokerages have given a 'Subscribe' rating to the IPO.
Hem Securities has assigned a 'Subscribe' rating and said, the company is bringing the issue at price band of Rs 695-720 per share at p/e multiple of 25 on post issue FY21 eps. The company has leadership in select high value; non-commoditized APIs in chronic therapeutic areas enjoys strong relationships with leading global generic companies. Also, the company's quality-focused compliant manufacturing and R&D infrastructure, strong focus on sustainability in operations along with cost leadership across products demonstrates its strong fundamentals.
ICICI Securities has assigned a 'Subscribe' rating and pointed out the positives stating, GLS has a good performance execution and clean regulatory track record. The company is also a leading developer and manufacturer of select high value, non-commoditised APIs in chronic therapies and works with 16 of the 20 largest generic companies globally. The growth momentum also has a strong undercurrent of global API industry growth.
Choice Broking has assigned a 'Subscribe' rating. It pointed out the positives stating that the company's leadership in select high value, non-commoditized APIs in chronic therapeutic areas, strong relationships with leading global generic companies, quality-focused compliant manufacturing and R&D infrastructure, strong focus on sustainability in operations, cost leadership across products through careful monitoring and continuous effort, and experienced management team with proven track record
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