Glenmark Life Sciences, a developer and manufacturer of active pharmaceutical ingredients (APIs), has priced its initial public offer (IPO) between Rs 695 and Rs 720 per equity share. The company has reduced its offer size by about Rs 150 crore. Bankers to the issue said that the promoters have reduced their selling stake marginally.
When filing the draft red herring prospectus (DRHP), the company was planning to raise Rs 1,160 crore as fresh capital, and promoters were planning to sell 7.3 million shares.
The IPO now consists of a fresh issue of Rs 1,060 crore and an offer for sale of 6.3 million shares worth Rs 453.60 crore.
The IP0 will begin on July 27 and conclude on July 29. The anchor investor bid will start on July 26, and it may get listed on exchanges on August 6.
Bids can be made for a minimum of 20 equity Shares and in multiples of 20 equity shares after that.
At the upper end of the price band, the company could raise to Rs 1,513.60 crore. The offer for sale is made by the company’s promoter, Glenmark Pharmaceuticals.
The company proposes to utilise the net proceeds from the fresh issue towards payment of outstanding purchase consideration to the promoter for the spin-off of the API business from the promoter into the company. And funding the capital expenditure requirements.
Glenmark Life Sciences is a wholly-owned subsidiary of Glenmark Pharmaceuticals. The parent launched its API manufacturing business in 2001-02 with a manufacturing facility in Kurkumbh. In 2019, the API manufacturing business of Glenmark was spun off into Glenmark Life Sciences as part of a broader reorganisation.
The company is a developer and manufacturer of select APIs in chronic therapeutic areas, including cardiovascular disease, central nervous system disease, pain management and diabetes. It also manufactures and sells APIs for gastro-intestinal disorders, anti-infectives and other therapeutic areas. The company also provides contract development and manufacturing operations services to multinational and speciality pharmaceutical companies.
As of March 31, 2021, the company sold its APIs in India, Europe, North America, Latin America, and Japan.
The company operates four multi-purpose manufacturing facilities situated at Ankleshwar and Dahej in Gujarat, India, and Mohol and Kurkumbh in Maharashtra.
Kotak Mahindra Capital, BofA Securities India and Goldman Sachs (India) are the global co-ordinators and book running lead managers to the offer. DAM Capital Advisors, BOB Capital Markets Limited and SBI Capital Markets are the book running lead managers to the offer.