A subsidiary of Glenmark Pharma, Glenmark Lifescience IPO, got fully subscribed within two hours of opening. The IPO received a strong response from all investors, especially the retail segment, who led the charge by oversubscribing on the first day.
Glenmark Lifescience is the subsidiary of the listed Glenmark Pharmaceutical, manufacturers critical non-commoditized APIs for chronic diseases, and enjoys a strong partnership with global players. The IPO released on July 27, 2021, will remain available for subscribing until July 29, 2021. It was a mix of new shares and offer for sale equities from promoters. The initial offer size was reduced after the anchor investor’s bidding on July 26, 2021.
Retail investors spearheaded the bidding for Glenmark life sciences IPO on the first day. The reduced offer size of Rs 1,541 crore received a 5.37x subscription in the retail segment when non-institutional investors bid for 90 percent of their quota. Qualified institutional investors are yet to bid for any significant quantity. They had subscribed for only 10,540 equity shares against their reserved quota of 42.42 lakh equity shares (0.01 percent after day one).
The issue reserved 50 percent for QIBs, and 35 and 15 percent respectively for retail and non-institutional investors. Overall the IPO received 2.89x subscriptions on day one for 4.34 crore equities against an IPO size of 1.5 crore equities.
Details of Glenmark Life Science IPO
- Glenmark Life Science planed to mobilise a fund of Rs 1513.6 crore comprising Rs 1,060 crore of primary components and 63 lakh equity shares in an offer for sale from promoters.
- The issue opened in the price band of Rs Rs 695-720 per scrip, carried a face value of Rs 2 per equity share.
- Glenmark Life IPO subscription dates are from July 27- 29, 2021.
- Investors can subscribe for a minimum of 20 equity shares per lot and increase bidding volume to 13 lots or 260 shares, taking the maximum investable amount to Rs 187,200.
- Glenmark Life Science IPO’s basis of allotment date is August 3, 2021, and the listing date is August 6, 2021.
Should you subscribe?
Glenmark Life Science IPO made a strong opening on the first day. Given the company’s profile and track record, it won’t be wrong to assume a strong debut in the stock exchange. Glenmark is an R&D driven strong leader in developing and manufacturing critical non-commoditised active pharmaceutical ingredients in chronicle therapeutic treatment. They have a strong regulatory record and command a global position in producing several high-value APIs. According to several market experts, it is an IPO that deserves a subscription.
The global API market is on a growth path and is expected to clock 6.2 percent CAGR by FY 26. Glenmark Life has several critical clients, including Glenmark, Teva Pharma Industries, Torrent Pharmaceuticals, Aurobindo Pharma, Krka, and more. They have solid financials and earned a profit after tax (PAT) of Rs 3,515.81 million on a revenue of Rs 18,859.76 million.
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