Glenmark Life Sciences IPO has been fully subscribed on Tuesday, the first day of the three-day bidding. Glenmark Life Sciences IPO, which has a price band of ₹695–720 a share, will conclude on July 29. The portion reserved for retail investors has already been subscribed 2.06 times, that for non-institutional investors (NIIs) and qualified institutional buyers (QIBs) portion has been subscribed 0.15 times and 0.00 times respectively, according to BSE data.
Glenmark Life Sciences shares were available at a premium of ₹110 in the grey market, according to market observers.
Prabhudas Lilladher and others have recommended subscribing to Glenmark Life Sciences IPO. “We believe the company is well poised to maintain consistent service quality as well as assure supply chain availability with its 1) leading manufacturing capabilities in key APIs, 2) strong relationship with global clients, 3) cost leadership, 4) quality-focused compliant production & R&D infrastructure and 5) experienced management team,” Prabhudas Lilladher said according to Money Control.
ICICI Direct said in a note that Glenmark Life Sciences has a good performance execution and a clean regulatory track record. “The company is also a leading developer and manufacturer of select high value, non-commoditised APIs in chronic therapies and works with 16 of the 20 largest generic companies globally. The growth momentum also has a strong undercurrent of global API industry growth. We recommend Subscribe to the issue,” it said.
“The company has a ROCE of 46.7% which is better than its peers like Divis labs, at an upper price band of ₹720 company is priced at PE of 22.38 which is better than all the API manufacturing companies,” Yash Gupta, an equity research associate with Angel Broking, said, according to Li “Overall company’s valuations are very attractive and we expect very good listing gains of around 25%-35%. We have a positive outlook on Glenmark Life science IPO,” Gupta added.
Glenmark Life Sciences IPO size was reduced to 1.5 crore equity shares after the company garnered ₹454 crore from anchor investors on Monday.
The subsidiary of Glenmark Pharma plans to raise ₹1,513.6 crore through the public issue which comprises a fresh issue of ₹1,060 crore, and an offer for sale of 63 lakh equity shares by promoter.
Glenmark Life Sciences filed the red herring prospectus for the offer with the registrar of companies on July 19 and it was taken on record by the ROC the next day, Glenmark Pharma said in a BSE filing. The expected date of listing on stock exchanges is August 6, according to reports.
(With agency inputs)