Glenmark Life Science IPO sails through on day 1
Premium- At the end of the day, the overall book, excluding the anchor allotment, was subscribed 2.84 times with applications for 41.78 mln shares against total 15.02 million shares on offer
Glenmark Life Science Ltd has subscribed fully on the first day led by continued robust interest from retail investors.
At the end of the day, the overall book, excluding the anchor allotment, was subscribed 2.84 times with applications for 41.78 mln shares against total 15.02 million shares on offer, according to data from exchanges.
The retail investor category was subscribed 5.30 times. The non-institutional category subscribed 0.88 times. Qualified institutional buyers have yet to start bidding.
The IPO has price band of ₹695-720 a share. The IPO will close on 29 July.
At the upper end of the IPO price band, Glenmark Life Sciences Ltd. is offered at 25.09x its FY21 earnings, analyst said.
"Given the company’s leadership in select high value non-commercialized APIs in chronic therapeutic areas, cost leadership, strong management, strong balance sheet, growing business, high RoNW of 46.71% in the fiscal ended March 31, 2021 and reasonable valuations", said Anand Rathi in a note to its investors.
Glenmark Life Science Ltd on Monday has garnered ₹454.32 crore from 19 anchor investors ahead of IPO opening.
The IPO will consist of a fresh issue of ₹1060 crore and an offer for sale of up to 6.30 million shares by Glenmark Pharmaceuticals Ltd.
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From its upper band of issue price, the company will raise approximately ₹1513.60 crore via IPO.
Glenmark Life Sciences is in the business of manufacturing active pharmaceutical ingredients (API). Its portfolio comprises 120 products. Currently, Glenmark Pharma holds a 100% stake in the company.
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