Glenmark Life Sciences Ltd, a subsidiary of Glenmark Pharmaceuticals Ltd, filed a Draft Red Herring Prospectus (DRHP) with the capital markets regulator SEBI for its initial public supplying (IPO). The public situation will comprise a fresh situation of Rs 1,160 crore equity shares and give-for-sale (OFS) of up to 73.05 lakh shares of a face worth of Rs 2, each and every. The IPO will be topic to industry circumstances, receipt of applicable approvals and other considerations. The promoters of Glenmark Pharmaceuticals Limited are Saldanha Family Trust, Blanche Elizabeth Saldanha, Glenn Saldanha and Cherylann Pinto.
Also study: G R Infraprojects files draft IPO papers with SEBI plans to sell 1.15 cr shares by means of public situation
According to the shareholding pattern of Glenmark Pharmaceuticals Ltd, the promoter and promoter group collectively hold 13.15 crore shares. The book operating lead managers to the situation will be DAM Capital Advisors Ltd, BOB Capital Markets, and SBI Capital Markets Ltd. The registrar to Glenmark Life Sciences will be KFin Technologies Private Ltd. The international coordinators and book operating lead managers to the situation are Kotak Mahindra Capital Company, BofA Securities India and Goldman Sachs (India) Securities Pvt Ltd, according to DRHP.
Also study: Lodha Developers’ Macrotech IPO listing day tactic: Weak subscription disappoints sell or hold shares?
Listed business peers
Upon listing, Glenmark Life Sciences will join the likes of Divis Laboratories Ltd, Laurus Labs Ltd, Shilpa medicare Ltd, Aarti Drugs Ltd and Solara Active Pharma Sciences Ltd. Divi’s Laboratories Ltd has the highest Price/Earning (P/E) ratio of 73 x, whilst Aarti Drugs the lowest of 11.62x. The typical business PE ratio stands at 31.1x.
Glenmark Life Sciences has proposed to utilise the net proceeds from the situation towards payment of outstanding obtain consideration to the promoter for the spin-off of the API business enterprise from the promoter into the organization pursuant to the Business Purchase Agreement (BPA). The organization has also planned to use the proceeds towards funding the capital expenditure specifications and common corporate purposes. It may possibly be noted that the quantity utilised for common corporate purposes can not exceed 25 per cent of the net proceeds of the fresh situation.
For the nine months ended December 31, 2020, Glenmark Life Sciences reported a profit of Rs 246.8 crore, whilst for the monetary year ended March 31, 2020, it clocked a profit of Rs 313 crore. Globally, India is one of the major suppliers of bulk drugs and formulations. Also, India has the highest quantity of USFDA authorized plants outdoors the US as properly as 44 per cent of international abbreviated new drug applications. India supplies a bulk of generic drugs globally not just to below-created nations but also to the United States and UK. Amid the COVID-19 pandemic, India’s pharma sector is attempting to reinvent and move forward from its lengthy-standing dependence on export of generics towards enabling the business to come to be an finish-to-finish drug manufacturer.