Glenmark Lifesciences is a subsidiary company of Glenmark Pharmaceuticals. Most analysts have given a subscribe rating for this Glenmark Lifesciences IPO, which is why the IPO has been fully subscribed on Day 1. The IPO size is 1514 crore rupees. The company has a debt of 916 crores. The company has to pay a debt of 800 crores to its parent company Glenmark Pharmaceuticals.
After the Glenmark Lifesciences IPO, the company will be debt-free, and this is one of the prime reasons that one should subscribe to this IPO. The IPO of Glenmark Lifesciences was among the most awaited ones. Still, due to pandemics and SEBI clearance, the IPO has opened now. In comparison to its peers, the valuations are also reasonable. The company has a strong balance sheet and relationship with leading global generic companies of the world. The company also has a clean track record with regulators and a perfect growth opportunity in CDMO services. The issue opened on July 27th and will close on July 29th.
The company will use the proceeds of the Glenmark Lifesciences IPO for paying off debt and some new purchases that the company has lined up. The working capital requirements will also be fulfilled to a great extent through this IPO. The parent company Glenmark Pharmaceuticals is a known commodity in its space and has given reasonable returns over the years. One can expect the same from Glenmark Lifesciences. The price band of the share is kept between 695-720 per share.
The minimum application size is 20 shares. The finalization of allotment will be done on 3rs August 2021, and the share will make its debut in exchange on August 6th, 2021. The company was incorporated in 2011 and is today one of the leading API manufacturers in the country. The countries’ products are not only sold in India. Still, they are also exported in North America, Latin America, Europe, and some Asian countries.
The company has 4 manufacturing units. Two units in Gujarat are located at Ankleshwar and Dahej, while two are in Maharashtra at Kurkumbh and Mohol. The grey market premium of the share is around 130-140 per share. Means a premium of 30%. Hence, the analysts expect a 40-50% listing gain and would be a really good bet in the Pharma space. After poor results of Dr. Reddy’s on June 27th, the subscription might take a beating as initially it was expected that Glenmark Lifesciences IPO would be subscribed at least 20 times, but now it seems like it will be half of that. Still a good bet for the ones who are in the financial markets just for listing gains.