Glenmark Life Sciences’ share sale via initial public offering (IPO) was subscribed by 44.17 times on Thursday, July 29 – the third and final day of its issue. The company’s Rs 1,513 crore IPO consisted of a fresh issue of Rs 1,060 crore and an offer for sale of Rs 453.60 crore by its promoters. The public offer opened for subscription on July 27 and closed today – July 29, remaining open for investors for a period of three days. On the second day of its issue, the IPO was subscribed nearly six times and on the first day, it was oversubscribed within hours of opening.
On Thursday, non-institutional investors (NII) showed a huge interest as the portion reserved for them was subscribed 122.54 times – the highest among the three groups of investors. The portion set aside for retail individual investors was subscribed 14.63 times, while the portion reserved for qualified institutional buyers (QIB) was subscribed 36.97 times.
Glenmark Life Sciences sold shares in the price band of ₹ 695-720 per equity share. The company is a leading manufacturer of selected specialized active pharmaceutical ingredients (APIs) for chronic therapeutic areas such as the central nervous system, diabetes, pain management, among others.
Domestic brokerage firm Anand Rathi gave a ‘subscribe’ rating for Glenmark Life Sciences IPO.
”At the upper end of the IPO price band, Glenmark Life Sciences Ltd. is offered at 25.09x its FY21 earnings, with a market cap of Rs. 88,219 million.
Given the company’s leadership in select high-value non-commercialized APIs in chronic therapeutic areas, cost leadership, strong management, strong balance sheet, growing business, high RoNW of 46.71 per cent in the fiscal ended March 31, 2021, and reasonable valuations; we give this IPO a “Subscribe” rating,” said Anand Rathi in its report.