CRISIL assigns grade 4/5 to Glenmark Generics IPO

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CRISIL has come out with a research report on the proposed initial public offer (IPO) of Glenmark Generics (GGL). It has assigned a CRISIL IPO Grade 4/5 to this IPO, in its report dated February 9.

The report says, "This grade indicates that the fundamentals of the IPO are above average relative to the other listed equity securities in India. However, this grade is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals. The grade is not a recommendation to buy / sell or hold the graded instrument, or a comment on the graded instrument's future market price or its suitability for a particular investor."

"The IPO grade reflects the company's status as a fast growing Indian generics company. GGL, given its dominant position among Indian players in the global generics market, is well placed to capitalise on the emerging opportunities in generics and to consolidate its presence in the regulated markets of US and Europe. The grading takes into account the company's strong product pipeline and strategy of focusing on niche and complex molecules in the US market. The grading also takes into account the relevant experience and domain expertise of the promoter and the top management and their demonstrated capabilities in driving business growth," according to CRISIL report.

The report also says, "GGL, a subsidiary of Glenmark Pharmaceuticals (GPL), is an integrated generics and API (Active pharmaceutical ingredient) player. GGL has a business presence in North America, EU and South America (Argentina) besides maintaining marketing front-ends. GGL markets APIs to more than 65 countries across the world. Of the expected issue size of Rs 5,750 million, GGL plans to utilise around Rs 4,800 million to part pay the loan due to GHSA (Glenmark Holding S.A., subsidiary of parent company - GPL) for the purchase of its generics business. The rest is expected to be used for general corporate purposes."

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To read the full report click on the attachment