Glenmark Life Sciences’ Rs 1,541-crore IPO (initial public providing) entered the final day of bidding today. The IPO has so far elicited a robust response from all pockets of investors in spite of the weak secondary market place sentiment. A subsidiary of the publicly traded Glenmark Pharmaceuticals, the enterprise is a developer and manufacturer of higher worth, non-commoditized APIs in chronic therapeutic regions with a robust partnership with international players. The enterprise will join peers such as Divis Laboratories, Laurus Labs, Solara Active Pharma Sciences, and Shilpa Medicare on the bourses. In the grey market place, shares of Glenmark Life Sciences have been trading with a moderate premium.
: Glenmark Life Sciences IPO subscribed 5.90 occasions so far verify grey market place premium right here
Entering the final day of the subscription window, Glenmark’s IPO has so far been subscribed 5.9 occasions currently. Retail investors have placed the most bids for the challenge, subscribing their portion 9.51 occasions, bidding for 6.99 crore shares. Non-institutional investors have bid for the challenge 3.48 occasions or 1.09 crore equity shares. Qualified Institutional Buyers (QIB) have bid for 1.4 occasions their portion or 58.65 lakh shares. The Rs 1,541 crore IPO of Glenmark Life Sciences is a mix of an present for sale (OFS) and a fresh challenge of equity shares.
Should you subscribe?
Glenmark Life Sciences has a portfolio of 120 molecules, with most of these getting non-commoditized. “Commoditized are simpler molecules and non-commoditized molecules are large and complex and mainly command higher pricing than commoditized molecules,” stated Ashika Stock Broking in a note. On the larger value band, Glenmark Life Sciences demands a P/E a number of of 25.1x based on FY21 post challenge completely diluted EPS, the note stated. Listed peers, nevertheless, are trading in the variety of 30x – 60x and the business typical is at 40x. And therefore Glenmark Life Sciences is seen to be valued at a discount to peers.
“GLS has a good performance execution and clean regulatory track record. Given the healthy growth prospects, a leading manufacturer of select high-value non-commoditised APIs in chronic therapies, expanding manufacturing facility, expanding R&D infrastructure, servicing new markets, explore new product, strong financials, healthy balance sheet and strong promoter backing with synergies augur well for the company’s performance going forward. Hence, it is recommended to “SUBSCRIBE” the challenge,” Ashika Stock Broking stated.
At the upper value band, analysts at Prabhudas Lilladher say the enterprise is attractively valued at 22.1x FY21 PER. The brokerage firm also has a ‘Subscribe’ rating on the challenge. Leading manufacturing capabilities in crucial APIs, robust relationship with international consumers, price leadership, excellent-focused compliant production & R&D infrastructure, and knowledgeable management group are seen as positive for Glenmark Life Sciences.