Glenmark Life Sciences Witnesses an Avg Debut on the Stock Market

Glenmark Life Sciences, a wing of Glenmark Pharmaceuticals Ltd, has made its public market debut at a premium of just 4%. It is over the issue price of Rs. 720 per share. This result seems tepid on the background of the IPO frenzy, where issues are attracting a premium price tag.

This stock opened at Rs. 751 on the BSE and Rs. 750 on the NSE on 6 August 2021.

The stock of Glenmark Life Sciences climbed up to Rs. 768.75 on the first day, registering a 6.8% growth within a few minutes of the opening trade.

• On 9 August 2021, at 10:50 am, Glenmark Life Sciences is trading at Rs. 725.55 on NSE and Rs. 725.70 on BSE.
• The trading volume of this stock on NSE at the time of writing was 2,266,818 and on BSE 137,607.

Regardless of its ‘not so exciting debut’, here is a summary of its IPO performance for you to learn about this initial offer.

An Overview of Glenmark Life Sciences IPO

Glenmark Life Sciences IPO received a strong response as it was subscribed 44.17 times between 27 and 29 July 2021. Here is a further breakdown of subscription –

• Qualified Institutional Buyers – 36.97 times
• Non-Institutional Investors – 122.54 times
• Retail Individual Investors – 14.63 times

Moreover, against the total 1.5 crores allocated, it received a bid for 66.33 crores shares.

Furthermore, Glenmark has accumulated Rs. 1060 crores through its fresh-issue, and Rs. 453.60 crores via its offer for sale (OFS). Glenmark Life Sciences plans to channelise the raised funds from fresh-issue equity shares to pay outstanding purchase consideration worth Rs. 800 crores to its promoter from Glenmark Pharma. Also, it will use Rs. 152.76 crores from this issue to meet capital expenditure requirements.

Why Glenmark Life Sciences is a Long-term Choice?

Glenmark Life Sciences is known for its manufacturing high-value Active Pharmaceutical Ingredients or APIs. Also, it is one of the few companies dealing in this segment. According to market experts, Glenmark Life Sciences shares can be an ideal long term investment option owing to the following reasons –

1. The company is well poised in its segment and one of the top names.
2. It has a global client base and maintains a long-standing relationship with them.
3. With a strong supply chain network, Glenmark Life Sciences keeps distribution on point.
4. It has state-of-the-art manufacturing capabilities in various APIs, and the production focuses on maintaining product quality.
5. It operates with a leading research and development facility and a team of qualified experts.

Glenmark Life Sciences is developing and manufacturing APIs in four notable therapeutic areas –

1. Central nervous system (CNS)
2. Diabetes
3. Pain management
4. Cardiovascular (CVS)

Apart from these, it also manufactures APIs of anti-infectives and gastro-intestinal disorders, to name a few.

Moving ahead,

Owing to the supply chain disruption of Chinese APIs due to the Covid-19 pandemic and the Indian Government’s initiatives creates a favourable environment for Indian API manufacturers. Resultantly, Glenmark Life Sciences is increasing its contract development and manufacturing services to the global market.

As of March 2021, the company has a portfolio of 120 molecules that are sold in domestic and international markets. Also, the company has filed for multiple certificates of suitability to monographs of the European Pharmacopoeia and Drug Master Files across various major markets. Therefore, it puts the company in a comparatively strong position in terms of both revenue and operations to lead this segment in the coming days.

Bottom Line

Irrespective of its lukewarm repose from investors, Glenmark Life Sciences has managed to meet its IPO target. This indicates that the market has ample faith on its growth and earnings prospects down the road. Regardless, if you are planning to purchase shares of this company, it is ideal to go through its financials and past performance to make an informed decision.

 

Frequently Asked Questions

1. What was the total issue size of Glenmark Life Sciences IPO?

The total issue size of Glenmark Life Sciences IPO was Rs. 1513.60 crores.

2. Who was the registrar of Glenmark Life Sciences IPO?

KFintech Private Limited was the registrar of this IPO.

3. What was the face value of Glenmark Life Sciences IPO?

The face value of this IPO was Rs. 2 per share.

4. What was the price band of Glenmark Life Sciences IPO?

The price band for Glenmark Life Sciences IPO was Rs. 695 to Rs. 720 per share.