Glenmark Life Sciences made a market debut with its shares getting listed at a 4 percent premium over issue price of Rs 720 per share on the bourses. Its disappointing listing comes within the backdrop of an IPO frenzy wherein many issues are becoming listed on the bourses at steep premium.
The stock opened at Rs 750 on the National stock market and at Rs 751 on the BSE.
The stock of the manufacturer of high value non-commoditized active pharmaceutical ingredients (APIs) in chronic therapeutic areas climbed up to Rs 768.75, rising 6.8 percent within jiffy from the opening trade. At 10:02 hours IST, it had been trading at Rs 760 with 5.56 percent gains on the NSE, and Rs 756.05 with 5.01 percent gains on the BSE.
Cumulatively, 70.93 lakh equity shares of the corporate traded on the BSE and NSE at the time of publishing this copy.
Glenmark Life Sciences’ initial public offering had received strong response from investors because the offer was subscribed 44.17 times during July 27-29, 2021. the difficulty received bids worth Rs 47,759.33 crore because the 1.5 crore shares offer garnered bids for 66.33 crore shares. The non-institutional investors’ reserved portion was subscribed 122.54 times, the qualified institutional buyers was subscribed 36.97 times and therefore the retail portion received 14.63 times subscription.
The company has raised Rs 1,060 crore through its fresh issue and Rs 453.60 crore via offer purchasable portion. internet proceeds from fresh issue are going to be utilised for payment of outstanding purchase consideration to the promoter for spin-off of the API business from the promoter Glenmark Pharma into the corporate , (Rs 800 crore) and cost requirements (Rs 152.76 crore).
Brokerages had given a subscribe rating for the difficulty . Prabhudas Lilladher recommended subscribe the IPO of Glenmark Life Sciences future gains because it believes the corporate is well poised to take care of consistent service quality also as assure supply chain availability with its 1) leading manufacturing capabilities in key APIs, 2) strong relationship with global clients, 3) cost leadership, 4) quality-focused compliant production & R&D infrastructure and 5) experienced management team.
The company is engaged in developing and manufacturing of APIs for four major therapeutic areas – Cardiovascular (CVS), Central systema nervosum (CNS), pain management (PMS) and diabetes. It also a deals in APIs of gastro-intestinal (GI) disorders, anti-infective (AI) and other therapeutic areas.
It is increasingly providing contract development and manufacturing operations (CDMO) services mainly to export markets. Given GOI incentives and favourable global environment post supply chain disruptions in Chinese APIs / intermediates thanks to pandemic, Glenmark Life’s focus lays on independent and professionally-managed API business, said the brokerage.
