Glenmark Life Sciences, a leading developer and manufacturer of high-value non-commoditised APIs, is expected to finalise the IPO share allotment in the coming week after closing the public issue on July 29.
The initial public offering received an overwhelming response from investors as it was subscribed 44.17 times. The portion set aside for qualified institutional investors saw a subscription of 36.97 times and that of non-institutional investors 122.54 times. The retail portion was booked 14.63 times.
The subsidiary of Glenmark Pharma raised Rs 1,513.6 crore through its public issue that comprised a fresh issue of Rs 1,060 crore and an offer for sale of 63 lakh shares by promoter Glenmark Pharma.
The final price is expected to be fixed at the higher end of the Rs 695-720 price band, as the majority of bids seem to have been received at Rs 720 a share. Even anchor investors received shares at that price.
The net proceeds from the offer will be used for the payment of outstanding purchase consideration to the promoter for spin-off of the API business from the promoter into the company (Rs 800 crore), and for funding capital expenditure requirements (Rs 152.76 crore).
To Know All IPO Related News, Click Here
Glenmark Life Sciences will finalise the basis of allotment with the designated stock exchange on August 3, as per the schedule available in the prospectus. Investors have two options to check the allotment.
One is the BSE website. An investor has to select equity and issue name 'Glenmark Life Sciences Limited'. Enter the application number and PAN and finally click on the "search" button to know the allotment status.
Allotment can also be checked on the IPO registrar's website. Select IPO - Glenmark Life Sciences Limited. Select application number, application type (ASBA/NON ASBA) and enter the application number, or select DPID/Client ID, select NSDL/CDSL, enter DPID and Client ID, or select and enter PAN. Finally, enter Captcha and click on "submit" to know the status.
After the finalisation of the basis of the allotment, funds will be refunded or unblocked from ASBA account on August 4, and equity shares will be credited to demat accounts of allottees on August 5.
Trading in shares will commence on August 6. Currently, the share is trading at a premium of Rs 150 in the grey market, the IPO Watch and IPO Central data showed.
The grey market premium translates to a trading price of Rs 870, up 20.8 percent over the expected final issue price of Rs 720 per share.
The grey market is an unofficial trading platform where shares get traded well before the allotment in an IPO and are listed on bourses.
Glenmark Life's comprises 120 products (10 products in laboratory development; four products in laboratory validation and 106 products being commercialised), ranging across various therapy areas like cardiovascular, central nervous system disease, diabetes, anti-infectives and others.The company also provides contract development & manufacturing operations (CDMO) services to a range of multinational and specialty pharmaceutical companies. As on FY21, APIs and CDMO contributed around 91 percent and 8 percent to the revenue, respectively.