Glenmark Life Sciences Limited IPO - Strengths, Purpose, Financial Performance and IPO details

Gaurav Seth
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Gaurav Seth

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 2020FY 2020FY 2019FY 2018
Total Revenue1,418.471,549.301,405.491,202.15
Total Expenses1,088.151,128.231,001.65892.76
Profit After Tax246.89313.09292.67229.37
Total Assets1,956.571,725.601,475.391,237.43

*All the values are in crores and as per DRHP.

Valuation of the Company

 For the nine-month period ended 31st December 2020FY 2020FY 2019FY 2018
Basic Earnings per Share (EPS)22.9029.0427.1521.28
Diluted Earnings per Share (EPS)22.9029.0427.1521.28
Return on Net Worth (%)38.11%77.94%332.11%100.36%
Net Assets Value per Equity share60.1037.268.1721.20

*As per DRHP. 

Glenmark Life Sciences Limited IPO DRHP

IPO details

Face Value₹2 per equity share
Market Lot20 Shares
Minimum Order Quantity20 Shares
Price Band₹695- ₹720 per equity share
Issue typeBook 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 Date27th July 2021
Close Date29th July 2021
Basis of Allotment Date03rd August 2021
Initiation of Refunds4th August 2021
The credit of shares to Demat Account5th August 2021
Listing Date6th August 2021

Allocation Quota

Qualified Institutional Buyers (QIBs)Not more than 50%
Non- Institutional Buyers (NIIs)Not less than 15%
Retail InvestorsNot less than 35%

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