Shares of Glenmark Life Science rose rapidly after its debut on the stock exchanges. The price per share on the Bombay Stock Exchange (BSE) rose to Rs 756, which is higher than the issue price of Rs 720 per equity share.
This IPO listing was a highly anticipated one, owing to its excellent performance from investors during its membership days, good level of company valuation as well as strong company financials. The stock was expected to list at a premium of around 10 per cent to 15 per cent over its final issue price of Rs 720, at the high end of the stock’s price band when listed.
The Glenmark Life Sciences IPO had earlier opened its Rs 1,514 crore initial public offering (IPO) in July. The public issue was open for subscription in the market for three days as it opened on July 27 and closed on July 29. At that time the issue saw tremendous participation from its investors. The issue consisted of a fresh issue of Rs 1,060 crore as well as an Offer for Sale (OFS) amounting to Rs 453.60 crore with 6,300,000 equity shares with a face value of Rs 2. Glenmark Life Sciences IPO got a total subscription of 44.17 times. The price band for the issue was listed as Rs 695 to Rs 720 per equity share.
Non-institutional investors played the biggest role in this, with a subscription of 122.54 times that allotted to them. Qualified institutional buyers were subscribed approximately 36.97 times and retail investors a total of 14.63 times against their allotted shares.
The gray market premium for the issue on Friday was Rs 85. This indicated that the shares were trading at a premium of around 12 per cent in the unlisted market. The shares were trading around Rs 780 to Rs 805 in the gray market against the IPO price band.
The company was incorporated in 2011 as a manufacturer of Active Pharmaceutical Ingredients (APIs). The company develops, manufactures, and supplies high quality APIs for cardiovascular disease (CVS), central nervous system disease (CNS), pain management, and diabetes, gastrointestinal disorders, anti-infection, and other therapeutic areas. Currently, Glenmark Life Sciences is active in many countries outside India. These include Europe, North America, Latin America, and Japan to name a few.
Speaking on the company’s vision, ICICI Direct had said, “GLS has a good performance performance and clean regulatory track record. The company is also a leading developer and manufacturer of select high value, non-commodityized APIs in chronic therapy and has over 20 global markets. Works with 16 of the largest generic companies. The growth momentum also has a strong undercurrent of growth for the global API industry.”
On the financial performance of the company and the growth witnessed by it, ICICI Direct said, “Revenue from regulated markets accounted for 65.64% of FY21 revenue. As of FY 2011, GLS had a portfolio of 120 molecules globally, sold APIs in India and exported its APIs to several countries in Europe, America, Latin America, Japan and ROW. As of May 31, 2021, GLS had filed 403 Drug Master Files (DMF) and Certificates of Suitability for the European Pharmacopoeia (CEP) monograph. GLS works with 16 of the 20 largest generic companies globally.”
read all Breaking News, breaking news And coronavirus news Here
.