The initial public offer (IPO) of Glenmark Life Sciences was fully subscribed on its first day on Tuesday. The public issue received bids for 4.17 crore shares against total 1.50 crore shares on offer.
The portion reserved for retail investors was subscribed 5.16 times.
Portion allocated for non-institutional investors was subscribed 85 percent. Qualified institutional buyers put in bids for 10,540 equity shares against their reserved portion of 42.42 lakh equity shares.
The IPO will close on July 29. Price band for the offer has been fixed at Rs 695-720 per equity share.
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A day ahead of the IPO on July 26, Glenmark Life Sciences raised Rs 454 crore from anchor investors. The company would allocate 63,06,660 equity shares to 19 anchor investors at Rs 720 a share, aggregating to Rs 454 crore.
HSBC Global Investment Funds, Government Pension Fund Global, Oaktree Emerging Markets Equity Fund LP, Copthall Mauritius Investment Ltd -ODI account, Societe Generale-ODI, Kuber India Fund and Reliance General Insurance Company were among the anchor investors.
The IPO comprised fresh issue of equity shares worth up to Rs 1,060 crore and sale of up to 63 lakh equity shares by Glenmark Pharma.
The firm plans to raise Rs 1,513.6 crore at the upper end of the price band of IPO.
Proceeds from the fresh issue will be used towards payment of outstanding purchase consideration to the promoter for the spin-off of the API business and funding the capital expenditure requirements.
Allotment of shares is likely to be done on August 3, 2021. ┬а
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The equity shares of the company will be listed on August 6 on BSE and NSE. Promoter of the firm will sell 17.2% stake during the IPO and will be left with 82.8% shareholding┬а in the company.
One can apply for a minimum of 20 shares comprising one lot size in the IPO. For buying one lot, Rs 14,400 would have to be spent.
A retail investor can apply for a maximum of 13 lots comprising┬а 260 shares for which Rs 1,87,200 will have to be spent.
Half of the total issue is reserved for qualified institutional buyers, 35 per cent for retail investors, and remaining 15 per cent for non-institutional investors.
Goldman Sachs (India) Securities Private Limited, SBI Capital Markets, Kotak Mahindra Capital Company, BofA Securities India Ltd, DAM Capital Advisors Ltd and BoB Capital Markets are the lead managers to the issue.
Brokerages are positive on prospects of the IPO.
Geojit has given a subscribe call to the share sale.
“We assign a ‘Subscribe’ rating for the issue on a long-term basis considering its strong focus on R&D, expansion plans(1726.6KL when completed), growth opportunity in CDMO services and expanding complex API portfolio,” the brokerage said.
Yash Gupta Equity Research Associate at Angel Broking said,”Based on FY-2021 PE of 22x and EV/EBITDA of 12.9 times at the upper price band of the IPO price, valuations are slightly better than the peer companies. Similarly, the company has one of the best ROCE of 32.7%. Company has a healthy balance sheet and will be net debt free after the IPO. We expect the upcoming expansion plan in Ankleshwar and Dahej will be the next growth driver for the company. We are assigning a тАЬSubscribeтАЭ recommendation to the issue.”
