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Glenmark Pharma’s API arm Glenmark Life Sciences to launch IPO on July 27, raise around Rs 1,515 crore; listing likely on August 6

The move is being seen as a value-unlocking exercise in a niche segment which is fetching attractive valuations and will provide investors the option of betting on a pure play API business. Glenmark Pharma’s stock has risen by 15 per cent in the last 3 months.

July 20, 2021 / 02:21 PM IST
 
 
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Glenmark Pharmaceuticals will launch the initial public offer (IPO) of its API (active pharmaceutical ingredients) arm Glenmark Life Sciences on July 27, 2021 and the expected date of listing is August 6, 2021, the leading drug maker disclosed in an intimation to the exchanges.

On June 18th 2021, Moneycontrol was the first to report that Glenmark Life Sciences was likely to launch its IPO to raise up to Rs 1700 crores in July 2021.

 

Incidentally, Moneycontrol was also the first to report the firm’s listing plans on March 9, 2021 and the filing of papers with Sebi on April 17, 2021.

As part of the proposed IPO, the fresh issue component would be up to Rs 10,600 mn and the offer for sale portion would be up to 6,300,000 equity shares, the firm said, adding that its red herring prospectus had been cleared by the Registrar of Companies.

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“ Broadly the company will look at raising Rs 1,515 crores in total,” a source told Moneycontrol on the condition of anonymity.

The move is being seen as a value-unlocking exercise in a niche segment which is fetching attractive valuations and will provide investors the option of betting on a pure play API business. The firm’s stock has risen by 15 per cent in the last 3 months.

According to the DRHP filing, Kotak Mahindra Capital, BofA Securities, Goldman Sachs, DAM Capital, SBI Capital and BoB Capital are the investment bankers working on the IPO. Trilegal & S&R Associates are the legal advisors.

According to the DRHP, the proceeds from the IPO will be used for:

a) Payment of outstanding purchase consideration to the promoter for the spin-off of the API business
b) Funding capital expenditure requirementsc) General corporate purposes
Ashwin Mohan
first published: Jul 20, 2021 02:04 pm

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