Glenmark Life Sciences IPO: Glenmark Life Sciences’ last chance for subscription of Rs 1541 crore IPO is today, July 29. Despite the weak market sentiment, it has got a lot of support from investors so far. So far, its IPO has been subscribed 5.39 times with retail investors subscribed the maximum 9.51 times for their reserve share. Talking about the gray market, its shares are trading with a moderate premium. Most of the experts have advised to subscribe to it.
Glenmark Life Sciences, a subsidiary of Glenmark Pharma, is a leading manufacturer of high value, APIs. It has business relationships with leading generic companies around the world. After the success of the IPO, the company will join peers like Divis Labs, Laureus Labs, Solera Active Pharma Sciences and Shilpa Medicare.
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Here is the expert opinion for subscription
- Glenmark Life Sciences portfolio comprises 120 molecules, most of which are non-commodity. According to the note of Ashika Stock Broking, Commoditized molecules are simple, whereas Non-Commoditized molecules are large and complex and their cost is also high. As per Ashika Stock Broink’s note, the post issue PE valuation based on upper price band is 25.1x while the listed peers are trading at 30x-60x and the industry average is 40x. In such a situation, the IPO of Glenmark Life Sciences is at a discount compared to Pierce. Glenmark Life Sciences has a good track record. The company’s focus is on R&D, Expansion, Growth Opportunity in CDMO Services and Expansion of Complex API Portfolio. Due to this, Ashika Stock Broking has given subscribe rating to the issue.
- Analyst at Prabhudas Lilladher believes that based on the upper price band, the PE valuation of the company is 22.1 times, then it is a better price. The issue is rated subscribe by brokerage firm Prabhudas Lilladher due to manufacturing capability of leading APIs, better relationship with global clients, cost leadership, focus on R&D and experienced management team.
lot size of 20 shares
For the IPO of Glenmark Life Sciences, a subsidiary of Glenmark Pharma, investors can place bids in lots of 20 shares. For this, a price of Rs 695-720 per share has been fixed i.e. according to the upper price band, investors will have to invest at least Rs 14400. 50 per cent of the shares worth Rs 756.8 crore have been reserved for Qualified Institutional Buyers (QIBs) and 15 per cent for Rs 227 crore for Non-Institutional Investors (NIIs). 35 per cent of the issue, valued at around Rs 529 crore, is reserved for retail investors. Funds from the newly issued shares will be used for capital expenditure and outstanding purchases.
(Article: Kshitij Bhargava)
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