Glenmark Life Sciences gets SEBI’s go-ahead to raise funds via IPO

Glenmark Life Sciences has received the Securities and Exchange Board of India’s (SEBI) approval to float an initial public offering (IPO). The company’s IPO comprises fresh issue of up to Rs 1,160 crore and an offer for sale of up to 73,05,245 equity shares by Glenmark Pharmaceuticals.

The company, which filed the draft red herring prospectus with the SEBI in April, got the regulator’s approval on June 6, 2021. Proceeds from the fresh issue worth Rs 900 crore will be used towards payment of outstanding purchase consideration to the promoter for the spin-off of the API business and around Rs 153 crore for funding the capital expenditure requirements. Goldman Sachs (India) Securities, SBI Capital Markets, Kotak Mahindra Capital Company, BofA Securities India, DAM Capital Advisors and BoB Capital Markets are the lead managers to the issue.

Glenmark Life Sciences, a subsidiary of Glenmark Pharmaceuticals, is a leading developer and manufacturer of select high value, non-commoditized active pharmaceutical ingredients (APIs) in chronic therapeutic areas, including cardiovascular disease, central nervous system disease, pain management and diabetes. The company also manufactures and sells APIs for gastro-intestinal disorders, anti-infectives and other therapeutic areas.