Glenmark Life IPO is getting launched for subscription on Tuesday 27, July 2021, and will be available for subscription till Thursday, July 29, 2021.
The company is looking to raise Rs.1513.6 crore through public issue which includes fresh issuance of shares worth Rs.1060 crore and offer-for-sale (OFS) of shares worth Rs.453.6 crore by existing shareholders.
The equity shares of Glenmark Life Sciences are proposed to be listed on both BSE and NSE.
The Glenmark Life IPO issue will be sold in the price band of Rs 695-720 per share and the minimum lot quantity is 20 shares and in multiples thereof translating to a minimum investment of Rs 14,400 at upper end.
The latest Grey market premium price (GMP) for Glenmark Life Sciences IPO were seen up by more than 22% and were trading around Rs.145-155 as of today, This means people are expecting it to open on listing day to be at least at Rs.850 or more.
Having said that GMP does not mean in anyway a recommendation for an IPO, the financials of a company and its future prospectus tells a lot.
Here is the thing no one can tell you whether the IPO will going to make a stellar debut or not, it is you who have to decide based on available information about the company.
Moreover the IPO’s now a days are very hot market every one wants to earn some quick money on listing day itself and there is nothing wrong about it.
One must not forget to check the financials and do not fall for any recommendation from anyone, it is you hard earned money, you should decide whether to opt for the IPO or not.
You may have watch various YouTube channels or read on different websites about recommendation for stocks and IPO, it is my humble suggestion and request please do not ever fall prey to it. Better than this is to invest in ETF’s?.
Therefore, whenever you are buying IPO make sure the money invested is not the one which you my need it urgently, always use extra money which you may not require in near future, Otherwise stay away completely.
Now, coming back to the Glenmark Life IPO let us talk about in brief about the company and its financials and other details step by step.
About Glenmark Life Sciences Ltd:
Glenmark pharmaceuticals is the parent company that own Glenmark Life Sciences (GLS) which is an active pharmaceutical ingredients (API) arm of Glenmark Ltd. The company is a leading manufacturer of select high value, APIs for CVS, CNS, pain management and diabetes.
It also manufactures and sell APIs for gastro-intestinal disorders, anti-infectives and other therapeutic areas. It has a strong market share in select specialised APIs like Telmisartan (anti-hypertensive), Atovaquone (anti-parasitic), Perindopril (anti-hypertensive), Teneligliptin (diabetes), Zonisamide (CNS) and Adapalene (dermatology).
The company is also increasingly providing contract development and manufacturing operations (CDMO) services to a range of multinational and specialty pharmaceutical companies.
Glenmark launched the API manufacturing business by setting up a manufacturing facility in Kurkumbh in Maharashtra in 2001-02 and focused on growing this business over the next 18 years.
In 2019, the API manufacturing business was spun off into the company as part of a broader reorganisation designed to place Glenmark on an accelerated trajectory to attain its objectives in three different verticals, with the company focusing on the API business.
Following the spin-off, it operates as an independent, professionally-managed global API business.
Revenues from regulated markets were 65.64% of FY21 revenues. As of FY21, GLS had a portfolio of 120 molecules globally, sold APIs in India and exported their APIs to multiple countries in Europe, US, Latin America, Japan and RoW.
As of May 31, 2021, GLS had filed 403 drug master files (DMFs) and certificates of suitability to the monographs of the European Pharmacopoeia (CEPs). GLS work with 16 of the 20 largest generic companies globally.
The company has four multi-purpose manufacturing facilities, which are situated on leasehold properties located at Ankaleshwar, Dahej in Gujarat and Mohol, Kurkumbh in Maharashtra with an aggregate annual total installed capacity of 726.6 KL as of FY21.
The company’s R&D spent was 2.1% of FY21 revenues. It regularly works on developing eight to 10 molecules each year. As of FY21, GLS has employed 213 personnel at R&D laboratories, which constituted 13.86% of their total permanent employee strength.
As of May 31, 2021, it owned or co-owned 39 granted patents, had 41 pending patent applications in several countries and nine pending provisional applications in India.
Glenmark Life Sciences Financials:
Glenmark Life total income increased by 21.73% to Rs. 18,859.76 million for the financial year 2021 from Rs. 15,493.03 million for the financial year 2020, primarily due to an increase in revenue from operations.
Whereas Revenue from operations increased by 9.42% to Rs. 15,373.13 million for the financial year 2020 from Rs. 14,050.26 million for the financial year 2019, primarily due to an increase in revenue from sale of products.
GLS, Profit for the year increased by 6.98% to Rs. 3,130.98 million for the financial year 2020 from Rs. 2,926.73 million for the financial year 2019.
The upper price band of Rs 720, the company is available at a P/E of 25x (diluted), EV/EBITDA of 14.7 which appears reasonably priced.
GLS has a good performance execution and clean regulatory track record. The growth momentum also has a strong undercurrent of global API industry growth therefore one can subscribe it for long term considering its strong focus on R&D, expansion plans (1726.6KL when completed), growth opportunity in CDMO services and expanding complex API portfolio.
Glenmark Life Science will join the peers such as Divis Laboratories, Lauris Labs, ShilpaMedicare, and Solara Active Pharma Sciences.
Glenmark Life IPO Details:
Glenmark Life Sciences limited will sell shares at Rs 695-720 per share in its 3 day initial public offering starting on July 27 to July 29, 2021.
The shares of Glenmark Life Sciences IPO will be allotted on 03 August, 2021, The tentative date of Glenmark Life Sciences IPO listing is around 06 August, 2021.
Of the total issue size, 50% or shares worth Rs 756.8 crore are reserved for Qualified Institutional Buyers (QIB) and 15% or Rs 227 crore of the issue has been kept for Non-institutional Investors (NII). 35% of the issue or shares worth Rs 529 crore are available for retail investors to bid on.
Glenmark Life Sciences Objects of the Offer:
It will use the fresh issue amount for the payment of outstanding purchase consideration for the spin-off of the API business and funding capital expenditure requirements.
Payment of Outstanding Purchases = 800.0 cr
Funding Capital Expenditure = 152.8 cr
General Corporate Purpose = 107.2 cr
Fresh Issue = 1060.0 cr
Offer for Sale*= 453.6 cr
Frequently Asked Question (FAQ):
1.What Is The Symbol For Glenmark Life Sciences Limited ?
Ans: The Symbol is GLS
2.When Glenmark Life IPO Coming?
Ans: The Issue Period for Glenmark Life IPO is 27-July-2021 to 29-July-2021.
3. Post Modification Period For Glenmark Life IPO?
Ans: The Post issue Modification Period for IPO is 30-July-2021 (10.00 A.M. to 11.00 A.M.).
4. What Is The Cut-off Time Period For UPI Mandate For Glenmark Life IPO?
Ans: The Cut-off time for UPI Mandate Confirmation is 30-July-2021 (upto 12:00 PM).
5. What Is The Issue Type For Glenmark Life IPO?
Ans: The Issue Type is 100% Book Building.
6.What Is The Price Band For Glenmark Life IPO?
Ans: The Price (Band) Range for Glenmark Life is Rs.695 to Rs.720 per equity share.
7. What Is The Lot Size For Glenmark Life IPO?
Ans: The Bid Lot i.e. Minimum Order Quantity (lot size) for Glenmark Life IPO is of 20 Equity Shares and in multiples thereof 20 Equity Shares.
8. Who Are The Book Running Lead Managers For Glenmark Life IPO?
Ans: The Book Running Lead Managers are, Kotak Mahindra Capital Company Limited,BofA Securities India Limited and Goldman Sachs (India) Securities Private Limited.
9. What Is The Face Value For Glenmark Life IPO?
Ans: The Face Value is of Rs.2 whereas The Tick Size is of Rs.1
10. What Is The IPO Market Timings For Glenmark Life IPO?
Ans: The IPO Market Timings is 10.00 a.m. to 5.00 p.m.
Apart from above points:
The Maximum Subscription Amount for Retail Investor is Rs. 2,00,000
The Name of the Registrar is KFin Technologies Private Limited
The Contact person name number and Email id is M Murali Krishna,+91 40 6716 2222, firstname.lastname@example.org
The Address of the Registrar is Selenium Tower B, Plot 31 & 32, Gachibowli, Financial District, Nanakramguda Serilingampally, Hyderabad 500 032, Telangana, India
Where To Check Glenmark Life IPO Application And Allotment Status?
As an investor or trader generally we are curious and anxious to know the results of the application as soon as possible. To ease the anxiety, both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have come up with dedicated pages and links which investors can use.
The NSE has an IPO bid verification module. It can be used to verify the IPO application details uploaded on the exchange bidding system by your member/bank. The data of the bid details uploaded by the member/bank would be available on T+1 day (where T would be date receipt of bid on NSE platform).
In addition, the data would be available until six days after the issue closure date. This gives the investor enough time to verify the data and instruct the member/bank to make any changes, if required.
Exchange will also provide allotment information as provided by the registrar to the issue.
An investor can avail this facility by registering using his/her PAN details. After registration, the investor will receive an email notification from NSE on the registered email address. That email will provide the login details.
The following link can be used for the same:
The BSE has also come up with a similar platform.
This unique facility allows investors to verify the status of their application submitted to a Trading Member or a SCSB (Self-Certified Schedule Banks).
The investor can check his application status/information on the website until one week after issue close.
The following link can be used by investors:
Important Things To Keep In Mind Before Applying For IPO’s:
- Try to fill for the same IPO online from different DP ID i.e. if in your family have more than 1 account you can possibly get the allocation done in case of over subscription.
- You should have a good knowledge of the sector and the company you are planning to invest.
- Analysis of the company’s balance sheet is very crucial. A clear understanding of the company’s future projects and vision is very necessary to know whether it will have a sustainable future.
- Investment decision has to be taken carefully and not in a hurry.
- Read as much as you can about the company, its objectives for launching the IPO, its past history in business and its futures prospectus.
- Don’t go for hype in the news, your analysis should be based on facts rather than gossips and rumors.
- Many IPOs are oversubscribed. What this means is that the demand for shares is much higher than the shares available for sale. In such a situation, it is no surprise that many investors fail to get any shares allotted to them. This is why it is advisable to apply for IPO shares on the last day of bidding. This way, one can have a good estimate on how large the subscription will be. Also, in that case, one should bid for just one lot and not unnecessarily lock up their capital.
The total market size in terms of sales for the company’s portfolio of 120 molecules globally was estimated to be US$142 billion in 2020 and is expected to grow about 6.8% over the next five years to reach US$211
billion by 2026.
The future growth of these products is expected to remain stable driven by the increasing prevalence of non-communicable diseases (including heart disease, stroke, cancer, diabetes and chronic lung disease), growing demand from the regulated markets for drugs indicated for hypertension, diabetes and cancer, and an aging population.
Since 2015, the company’s facilities have been subject to 38 inspections and audits by regulators including the USFDA and others. It has not received any warning letters/import alerts from regulatory authorities. Its facilities have also been subject to 432 inspections by customers during this period.
GLS has been able to maintain high customer loyalty with a high rate of repeat customers. For FY21, ~69% of customers were period-on period repeat customers.
It also has a long history with many key customers, including Glenmark, Teva Pharma, Torrent Pharma, Aurobindo Pharma, Krka and another company, which is a global leader in generic pharmaceuticals and biosimilars.
Let us checkout some of the strengths and risk factors for Glenmark Life Sciences Ltd
Some of the qualitative factors and strengths of Glenmark Life Sciences
- Leadership in select high value APIs in chronic therapeutics
- Strong relationships with leading global generic companies
- Quality-focused compliant manufacturing
Some of the Risk Factor for Glenmark Life Sciences
- Regulatory concern
- Customer concentration – 50%+ revenue from five customers
- Product concentration – top 10 products contribute 66.36%
- Raw material uncertainty – three largest suppliers accounted for 40.26% of total purchases of key starting materials
Pricing pressure from customer
Therefore, it is always advisable to go through Glenmark Life IPO – RHP to know in detail about the company.
The only thing which should be bothering you is the research you did before applying for the IPO. Investing in IPO is risky as well as profitable.
Having said that you also need to keep in mind important things mentioned above before applying to IPO’s as the risk is always involved.
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Note: Please do your own research and make investment. Moneycontain will not be responsible for any of your losses at all. The point made is for educational purpose only and intended to give information.
All investments are subject to risks, which should be considered prior to making any investments. The above details are compiled from information available on public platforms. These are not buy or sell recommendations.