Glenmark Life Science shares went up higher upon its debut on the stock markets. The price per share rose to Rs 756, a premium over the issue price of Rs 720 per equity share on the Bombay Stock Exchange (BSE).
This IPO listing was a highly anticipated one due to the stellar performance it had on its subscription days from investors, the decent level of valuation of the company as well as the strong company financials. Upon listing the stock was expected to list at a premium of around 10 per cent to 15 per cent over its final issue price of Rs 720, at the higher end of the price band.
The Glenmark Life Sciences IPO had opened its Rs 1,514 crore initial public offering (IPO) earlier in July. The public issue was open for three days for subscription on the market as it opened on July 27 and closed on July 29. In that time the issue saw very robust participation from its investors. The issue consisted of a fresh issue of Rs 1,060 crore as well as an offer for sale (OFS) that aggregated up to Rs 453.60 crore with 6,300,000 equity shares with a Rs 2 face value. The Glenmark Life Sciences IPO was subscribed a total of 44.17 times. The price band for the issue was listed as Rs 695 to Rs 720 per equity share.
The non-institutional investors played the biggest part in that with a subscription of 122.54 times that of what they were allotted. The qualified institutional buyers were subscribed at around 36.97 times and the retail investors subscribed to the issue a total of 14.63 times against their allotted shares.
The grey market premium for the issue on Friday stood at Rs 85. This indicated that the shares were commanding a premium of around 12 per cent on the unlisted market. The shares were trading for around Rs 780 to Rs 805 on the grey market against the IPO price band.
The company was incorporated in 2011 as a manufacturer of Active Pharmaceutical Ingredients (APIs). The company develops, manufactures, and supplies high-quality APIs for cardiovascular disease (CVS), central nervous system disease (CNS), pain management, and diabetes, gastrointestinal disorders, anti-infectives, and other therapeutic areas. Currently, Glenmark Life Sciences is active in many countries outside of India. These include the likes of Europe, North America, Latin America and Japan to name a few.
Speaking on the outlook of the company, ICICI Direct had said, “GLS has a good performance execution and 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.”
On the topic of the company’s financial performance and the growth it has seen, ICICI Direct added, “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.”