Glenmark Life Sciences IPO: What GMP signaling on last date of subscription
Premium- Glenmark Life Sciences IPO: On account of overwhelming response from the bidders, Glenmark Life Sciences shares are doing well in the grey market
Glenmark Life Sciences IPO: ₹1,514 crore initial public offer of Glenmark Life Sciences got subscribed 5.78 times by day 2 and there is still one full day left for bidders to apply for the IPO. On account of overwhelming response from the bidders, Glenmark Life Sciences shares are doing well in the grey market too. Glenmark Life Sciences IPO GMP today is ₹140, which is ₹15 up from its Wednesday price in the grey market. According to market observers, Glenmark Life Sciences IPO grey market premium has been oscillating around ₹125 to ₹140 for the last three days that means market is expecting around 18 to 20 per cent listing gain from the public issue. They said that today is the last date of bidding and those who were in wait and watch, may come forward to bid for the IPO as the stock has remained strong in the grey market on first two days of bidding.
What this GMP means for Glenmark Life Sciences IPO
Market observers said that grey market premium of a public issue is an unofficial market expectation about the listing gains. As Glenmark Life Sciences IPO grey market premium today is ₹140, its expected listing price in the grey market is around ₹860 ( ₹720 + ₹140) — around 20 per cent higher from its issue price band of ₹695 to ₹720. For the last three days, Glenmark Life Science IPO GMP has been oscillating around ₹125 to ₹140. Yesterday, it was at ₹125, while on Tuesday it was ₹141. So, those investors who look at the GMP before going into the financials of the company, may get attracted by this grey market performance of the public issue and surprising response from the bidders is expected by the bidders as subscription is open for today only, said market observers.
Highlighting the financials that augurs strong listing of the shares; Saurabh Joshi Research Analyst at Marwadi Shares and Finance said, "Considering the FY-21 adjusted EPS (Earnings Per Share) of ₹28.69 on post-issue basis, the upper price band implies a P/E multiple of 25.09 with a market cap of ₹88,220 mn, while its peers namely Divi’s Laboratories, Laurus Labs and Shilpa Medicare are trading at a P/E multiple of 64.0, 36.1 and 36.5 respectively. We recommend to subscribe this IPO as the company is a leader in select high value, non-commoditized APIs in chronic therapeutic areas with quality-focused & compliant manufacturing / R&D infrastructure and is available at reasonable valuation as compared to its peers."
Standing in sync with Saurabh Joshi's views; Abhay Doshi, Founder, UnlistedArena.com said, "The issue looks moderately priced. Owing to the buzz in primary market, the issue should witness good subscription today."
Glenmark Life Sciences IPO details
- Glenmark Life Sciences IPO price band is ₹695 to ₹720
- Tentative Glenmark Life Sciences IPO allotment date is 3rd August 2021
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- Expected Glenmark Life Sciences IPO listing date is 6th August 2021
- Glenmark Life Sciences shares will be listed at both NSE and BSE
- After listing, promoters' holding in the company will go down from existing 100 per cent to 82.84 per cent.
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