IPO Update: Glenmark Life Sciences IPO subscribed 30.77 times on last day

The initial public offer (IPO) of Glenmark Life Sciences has been subscribed 30.77 times on July 29, the final day of bidding.

According to the subscription data available on the exchanges till 16:35 IST, the offer has received bids for 66,30,66,500 equity shares against the IPO size of over 2,15,51,798 equity shares.

Proceeds from the fresh issue will be used towards the payment of outstanding purchase consideration to the promoter for the spin-off of the API business and funding the capital expenditure requirements.

Yash Gupta Equity Research Associate at Angel Broking said, "Based on FY-2021 PE of 22x and EV/EBITDA of 12.9 times at the upper price band of the IPO price, valuations are slightly better than the peer companies. Similarly, the company has one of the best ROCE of 32.7%. The company has a healthy balance sheet and will be net debt-free after the IPO. We expect the upcoming expansion plan in Ankleshwar and Dahej will be the next growth driver for the company. We are assigning a “Subscribe” recommendation to the issue."

The IPO comprised fresh issue of equity shares worth up to Rs 1,060 crore and sale of up to 63 lakh equity shares by Glenmark Pharma. Allotment of shares is likely to be done on August 3, 2021.

Glenmark Life Sciences raised Rs 454 crore from anchor investors. The company would allocate 63,06,660 equity shares to 19 anchor investors at Rs 720 a share, aggregating to Rs 454 crore.

HSBC Global Investment Funds, Government Pension Fund Global, Oaktree Emerging Markets Equity Fund LP, Copthall Mauritius Investment Ltd -ODI account, Societe Generale-ODI, Kuber India Fund and Reliance General Insurance Company were among the anchor investors.

The company operates 4 multi-purpose manufacturing facilities which are situated on leasehold properties located at Ankleshwar & Dahej in the state of Gujarat, and Mohol & Kurkumbh in the state of Maharashtra, with an aggregate annual total installed capacity of 726.6 KL as of March 31, 2021.