Glenmark Life Sciences IPO Day 1: Should you subscribe?


Today is the first day of Glenmark Life Sciences’ first public offering (IPO).

The initial public offering (IPO) of Glenmark Life Sciences was launched today and received a significant reaction from participants, with the issue subscribed in less than two hours. Retail investors have oversubscribed the issuance.

The Rs 1,541 crore public offering contains a mixture of new equities and an offer for sale (OFS) from current shareholders. Glenmark Life Sciences started trading at a low premium in the grey market on the first day of the bid.

Retail investors subscribed to the issue 2.46 times. The public offering drew a positive response from retail investors, who subscribed to their quotas within the first hour.

The issue has ben subscribed 0.21 times by non-institutional buyers. In the meantime, Qualified Institutional Buyers (QIB) are yet to make a significant offer for the issue.

QIBs will get 50% of the IPO, retail investors will get 35%, and NIIs will get 15%. The transaction was oversubscribed 1.28 times, with investors vying for 2.02 crore equity shares out of a total of 1.5 crores available. 

Glenmark Life Sciences was dealing in the unregistered category for Rs 125-150 per share. Glenmark Life Sciences sold at a premium of Rs 135 per share on the grey market before the IPO.

Should you get a subscription?

As part of the OFS, the business would get Rs 1,060 from the issuance, remaining the selling shareholders. Glenmark intends to pay off the acquisition price for the company.

Glenmark Life Sciences has a clean legal record, with no violation notices or trade warnings from regulatory bodies.

Analysts at ICICI Direct think the issue is valued at FY21 EV/EBITDA of 14.7x on the top end of the pricing band. The stock gets a subscription rating from ICICI Direct.

Glenmark Life Sciences, a Glenmark Pharmaceuticals division, is a prominent researcher and producer of non-commoditized active pharmaceutical ingredients (APIs) in critical medical specialities such as heart disease, nervous system illness, pain control, and diabetes.

APIs for gastrointestinal diseases, anti-infectives, and other medical fields are also manufactured and sold by the firm.

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