The Rs 1,514-crore initial public offering of Glenmark Life Sciences Ltd.'s witnessed strong investor interest on the third and final day of bidding.
The issue was subscribed 45.08 times at the end of the final day. Demand was led by non-institutional investors, with their portion being subscribed 125.62 times. Retail and institutional investor appetite was also healthy. The issue was the thirteenth-most subscribed IPO of the year so far.
Glenmark Life Sciences, a unit of Glenmark Pharmaceuticals Ltd., is selling shares at Rs 695-720 apiece. This gives it a market value of Rs 8,822 crore at the upper end of the price band. The offer comprises a fresh issue of Rs 1,060 crore and offer-for-sale worth Rs 453.6 crore by the parent.
The company plans to use Rs 800 crore from the IPO proceeds to pay the parent for acquisition of active pharmaceutical ingredient business in 2018. It will use Rs 155 crore for brownfield capital investment at its Dahej facility to enhance the total installed capacity by 200 kilolitres. The rest will be used for additional facilities and general corporate purposes.
Prior to the IPO, the company raised Rs 454 crore by allotting 63 lakh shares to 19 anchor investors.
Subscription Details: Day 3
The IPO was subscribed 45.08 times as of 5:00 p.m. on July 29.
Institutional subscription: 37.30 times
Non-institutional subscription: 125.62 times
Retail subscription: 15 times
Research Reports On Glenmark Life Sciences IPO
An R&D Driven Active Pharmaceutical Ingredient Player: Geojit
Leveraging API Base Towards Contract Development, Manufacturing: Dolat Capital
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