Glenmark Life Sciences Looking to hit the market with initial public offering (IPO) on July 27, 2021. The company plans to raise around Rs 1,514 crore through this public issue. The company specializes in the development and manufacturing of Active Pharmaceutical Ingredients (APIs) with a total of 120 different APIs in its catalogue. Glenmark Life Sciences supplies APIs to 540 pharma companies in India and abroad. Internationally, the company has active customers in Europe, Latin America, North America, and Japan, to name a few. Established in 2011, the company now has four separate manufacturing facilities in the country, located at Ankleshwar and Dahej in Gujarat and Mohol and Kurkumbh in Maharashtra.
With that said, here are 10 important things you should know first IPO Will hit the open market next week.
1) The Public Issue
The size of the IPO is around Rs 1,514 crore with a fresh issue of Rs 1,060 crore. This also includes an offer for sale (OFS) of Rs 453.60 crore, with a face value of Rs 2 per equity share. OFS has an allotment of 63,00,000 shares. On Friday, the gray market premium of Glenmark Life Sciences stood at Rs 200 in the gray market.
2) Important Dates to Know (Pre-IPO)
The IPO will open for bidding on July 27 and close on July 29, 2021. Any anchor booking is likely to happen a day before 26th July.
3) Price Band
The IPO price band of Glenmark Life Sciences is Rs 695 to Rs 720 per equity share. The company is planning to generate Rs 1,497.85 crore at the lower end of the price band which is Rs 695. At the higher end of the price band at Rs 720 per share, the company plans to raise Rs 1,513.6 crore.
4) IPO lot size and reservation
The company has a minimum market lot of 20 shares for applying for a minimum amount of Rs 14,400. At the high end, the IPO has a size of 260 shares, with an application amount of Rs 187,200. Retail investors can apply in the maximum lot size range up to 13 lots. Qualified Institutional Buyers (QIBs) have 50 per cent of the offer reserved for the investor. On the other hand, non-institutional buyers have 15 per cent allocation reserved, while individual retail bidders have 35 per cent allocation for this IPO.
5) Important Post-IPO Dates
After the IPO, the refund for the unsuccessful bidder will be refunded on August 4, while the successful bidders will get their money deposited in the demat accounts the next day on August 5. The company has a possible listing date of August 6; However, this is yet to be confirmed.
6) Objective of the offer
The company plans to use the proceeds from the public issue to pay the outstanding purchase consideration to the promoter for the spin-off of the API business and in accordance with the business purchase agreement, Glenmark Life Sciences said in its Is. Draft Red Herring Prospectus (DRHP). It is intended to be used for capital expenditure requirements as well as for general corporate purposes.
7) Company Financial
For the FY21 fiscal year, Glenmark Life reported a profit of Rs 351.58 crore as well as revenue of Rs 1,885.16 crore in the same year. In the previous financial year of FY20, its profit margin was lower by Rs 313.09 crore on revenue of Rs 1,537.51 crore. It shows the trend of growth in profits and revenue with the latest financial year being the highest in returns.
8) Promoter and Promoter Group
The promoter of the company in the upcoming IPO is Glenmark Pharmaceuticals Ltd and it has a pre-IPO stake of 100 per cent. The shareholding for this post the IPO is expected to be around 82.84 per cent. According to DRHP, the promoter group outlines Glenn Saldanha and Cherilyn Pinto as key shareholders going forward. Glenn Saldanha is the company’s chairman and non-executive director.
9) Company Profile
The company specializes in the development and manufacturing of Active Pharmaceutical Ingredients (APIs) with a total of 120 different APIs in its catalog, which are being distributed to its customer base of 540 pharma companies worldwide. It currently operates in four different facilities in India. These locations are at Ankleshwar and Dahej in Gujarat as well as Mohol and Kurkumbh in Maharashtra with a total annual installed capacity of 726.6 KL as of March 31, 2021. This capacity was 725.8 KL as on December 31, 2020.
10) Competitive strength
As per information about Chittorgarh, the company is a leading manufacturer of specialized APIs that are specifically used for chronic therapeutic areas like Cardiovascular Disease (CVS), Central Nervous System Disease (CNS), Diabetes and Pain Management. It has strong international links with large pharma companies and exports globally. As per the report, it also has a high quality standard of product manufacturing along with R&D infrastructure. In addition, it has a proven financial track record that has improved over the years, and makes for a strong front-runner.
read all Breaking News, breaking news And coronavirus news Here
.