The initial public offering of Glenmark Life Sciences, a subsidiary of Glenmark Pharmaceuticals, was subscribed 44.17 times, getting bids for 66.32 crore equity shares against the IPO size of 1.5 crore shares on July 29, the last day of the offer, subscription data available on exchanges showed.
Retail investors have put in bids 14.63 times their reserved portion and that of non-institutional investors 122.54 times. The portion set aside for qualified institutional investors was subscribed 36.97 times.
The leading developer and manufacturer of active pharmaceutical ingredients (APIs) is planning to raise Rs 1,513.6 crore through the IPO which comprises a fresh issue for Rs 1,060 crore and an offer for sale of 63 lakh equity shares by Glenmark Pharma.
The price band for the offer has been fixed at Rs 695-720 per equity share. "At the upper price band of Rs 720, the stock is trading at a P/E multiple of 22.1(x)," said Arihant Capital Markets, recommending subscribe for long-term rating for this issue.
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The brokerage believes Glenmark Life Sciences has a good long-term proven business model with a strong product portfolio, strong and long-term relationship with key customers, an experienced management team with a consistent track record supported by strong performance, timely execution and a clean regulatory track record.
Also read: Glenmark Life Sciences IPO: Issue size, price, lot size, company financials and other details
Glenmark Life shares traded at a premium of Rs 150 in the grey market, the IPO Watch and IPO Central data showed. It translates to a trading price of Rs 870, 20.8 percent higher from Rs 720, the upper end of the issue price.
The company derives around 35 percent of revenue from Glenmark Pharma (promoter company) and the remaining from other pharma companies. The company's 65.64 percent of the revenue was derived from regulated markets by the company as on FY21.
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It exports to 60-70 countries across the world and is working with 16 of the 20 largest generic companies globally.
It has four manufacturing facilities, with an aggregate annual capacity of 726.6 KL as on March 2021.
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