Glenmark Life Sciences IPO: The Rs 1514 crore IPO of Glenmark Life Sciences is going to open for subscription on Tuesday, July 27.
Glenmark Life Sciences IPO: The Rs 1514 crore IPO of Glenmark Life Sciences will open for subscription on Tuesday, July 27. Under this issue, new shares worth Rs 1060 crore will be issued, while shares worth Rs 453 crore will be offered to the company’s existing shareholders for sale.
Before the IPO, its shares in the gray market have reached a premium of 20 percent. Glenmark Life Sciences, a subsidiary of Glenmark Pharmaceuticals, manufactures Active Pharma Ingredients (APIs). Its IPO will be the fifth issue of July. Glenmark Life Sciences may be listed in the market next month in August.
lot size of 20 shares
For the IPO of Glenmark Life Sciences, investors can place bids in lots of 20 shares. For this, a price of Rs 695-720 per share has been fixed i.e. according to the upper price band, investors will have to invest at least Rs 14400.
50 percent of the shares worth Rs 756.8 crore have been reserved for Qualified Institutional Buyers (QIBs) and 15 percent for Rs 227 crore for Non-Institutional Investors (NICs). 35 percent of the issue, valued at around Rs 529 crore, is reserved for retail investors. Funds from the newly issued shares will be used for capital expenditure and outstanding purchases.
Premium condition in the gray market
Before the IPO, Glenmark Life Sciences was trading at a weak premium in the gray market. According to Mannan Doshi, co-founder of Unlisted Arena, its shares are currently trading at a premium of just Rs 135 per share despite strong fundamentals and bright prospectus. According to Doshi, the issue price fixed by the company is reasonable and may prove beneficial after the corona has passed. Chinese companies are facing stricter regulations, which can benefit Indian API players.
This is the opinion of experts regarding subscription
Analysts at Geojit Financial Services have been advised subscribing to this IPO for a long time. This rating has been given based on a specific focus on Research and Development (R&D), growth opportunities in CDMO services, expansion in complex API portfolio, etc. According to the brokerage firm, according to the upper price band of Rs 720, this stock is available at 25x, which is a better price.
The company produces around 120 products and the API business generates substantial revenue. According to Religare Broking, Glamark Life Sciences has strong associations with leading generic pharma companies across the world through which the company has expanded its product portfolio.
This has increased the company's presence in many countries. In such a situation, Religare Broking has also considered the company's IPO worth investing in from a long-term perspective.