Glenmark Life Sciences Limited IPO
Incorporated in 2011 as ‘Zorg Laboratories Private Limited’ but in 2018 it was acquired by Glenmark Pharmaceuticals and the name of the company was renamed as Glenmark Life Sciences. It is a leading developer and manufacturer of non-commoditized active pharmaceutical ingredients (APIs) in chronic therapeutic areas which include central nervous system disease (CNS), cardiovascular disease (CVS), pain management, and diabetes.
Glenmark life sciences products are enabled by high standards of quality and process innovation. The products are sold in both regulated and emerging markets. As of 31st December 2020, it had a portfolio of 120 molecules globally and the API products were sold in India as well as outside India like in North America, Latin America, Europe, Japan, and many more.
It currently operates 4 multi-purpose manufacturing facilities on leasehold properties in Ankleshwar and Dahej in Gujarat and Mohol and Kurkumbh in Maharashtra. As of 31st December 2020, the aggregate annual installed capacity was 725.8 KL.
The promoter of the company is Glenmark Pharmaceuticals Limited.
Strengths of the Company
- Strong relationships with leading global generic companies
- Quality-focused compliant manufacturing and R&D infrastructure
- Strong focus on sustainability in operations
- Cost leadership across products through careful monitoring and continuous effort
Purpose of the IPO
- Payment of the outstanding purchase consideration for the spin-off API business
- To fund the capital expenditure requirements
- For general corporate purposes
Financial Performance of the Company
| For the nine-month period ended 31st December 2020 | FY 2020 | FY 2019 | FY 2018 | |
| Total Revenue | 1,418.47 | 1,549.30 | 1,405.49 | 1,202.15 |
| Total Expenses | 1,088.15 | 1,128.23 | 1,001.65 | 892.76 |
| Profit After Tax | 246.89 | 313.09 | 292.67 | 229.37 |
| Total Assets | 1,956.57 | 1,725.60 | 1,475.39 | 1,237.43 |
*All the values are in crores and as per DRHP.
Valuation of the Company
| For the nine-month period ended 31st December 2020 | FY 2020 | FY 2019 | FY 2018 | |
| Basic Earnings per Share (EPS) | 22.90 | 29.04 | 27.15 | 21.28 |
| Diluted Earnings per Share (EPS) | 22.90 | 29.04 | 27.15 | 21.28 |
| Return on Net Worth (%) | 38.11% | 77.94% | 332.11% | 100.36% |
| Net Assets Value per Equity share | 60.10 | 37.26 | 8.17 | 21.20 |
*As per DRHP.
Glenmark Life Sciences Limited IPO DRHP
IPO details
| Face Value | ₹2 per equity share |
| Market Lot | 20 Shares |
| Minimum Order Quantity | 20 Shares |
| Price Band | ₹695- ₹720 per equity share |
| Issue type | Book Built Issue IPO |
| Issue Size | ₹1,513.60 Crores |
| Fresh Issue | ₹1,060 Crores |
| Offer for Sale | ₹453.60 Crores |
| Listing | NSE, BSE |
Important IPO dates
| Open Date | 27th July 2021 |
| Close Date | 29th July 2021 |
| Basis of Allotment Date | 03rd August 2021 |
| Initiation of Refunds | 4th August 2021 |
| The credit of shares to Demat Account | 5th August 2021 |
| Listing Date | 6th August 2021 |
Allocation Quota
| Category | Portion |
| Qualified Institutional Buyers (QIBs) | Not more than 50% |
| Non- Institutional Buyers (NIIs) | Not less than 15% |
| Retail Investors | Not less than 35% |
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