Shares of Glenmark Life Sciences Ltd. gained on debut after its initial public offering witnessed strong investor interest.
The stock began trading at Rs 751.10 apiece on the Bombay Stock Exchange—a 4.3% premium to its issue price of Rs 720. The stock later rose to an intraday high of Rs 799.95 (up 11.1%) before correcting. It closed 3.9% higher at Rs 748.2.
The company's Rs 1,514-crore initial public offering was subscribed 45.08 times, making it the thirteenth-most subscribed IPO of the year so far. Demand was led by non-institutional investors, with their portion being subscribed 125.62 times. Retail and institutional investor appetite was also healthy.
Glenmark Life Sciences plans to utilise Rs 800 crore from the IPO proceeds to pay parent Glenmark Pharmaceuticals Ltd. for the acquisition of its API business in 2018 and Rs 155 crore for brownfield capital investment at its facility in Dahej, Gujarat. The company also intends to set up a greenfield facility in Solapur, Maharashtra, to double its capacity by 2024.
Glenmark Life Sciences has about 120 APIs in its portfolio and works with 16 of the 20 largest generic companies globally. It operates four manufacturing facilities in India, across Gujarat and Maharashtra.
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