Glenmark Life Sciences Limited IPO

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Glenmark Life Sciences Limited IPO

Glenmark Life Sciences (GLS) is a wholly-owned subsidiary of Glenmark Pharmaceuticals Limited, a research-oriented, innovation-led, global pharmaceutical company, which was established in 1977 and is listed on the BSE and NSE. GLS was incorporated as Zorg Laboratories Private Limited at Pune in the year 2011, it was acquired by Glenmark Pharmaceuticals Limited in the year 2018.

Glenmark Life Sciences, The Issuer is expected to come up with an IPO of Rs  (X) crore. The Issue comprises of fresh issue and an offer for sale. Offer details follow:

Offer Details
Offer Size Rs 1513.6  crore
of which
Fresh Issue Rs 1060 crore
Offer for sale Upto 63,00,000 equity shares
Price Band Rs 695-720 per share
Offer Period Juy 27- Jul 29
Offer Structure QIBs: upto 50% of the offer
NIIs: upto 15% of the offer
RIIs: upto 35% of the offer
Market Lot Minimum (1 lot) 20 shares, Rs 14400
Maximum
Listing on BSE, NSE
BRLM’s DAM Capital, BOB Capital Markets, SBI Capital Markets
Registrar Kfintech

Objects of the Fresh Issue of Glenmark Life Sciences Limited IPO

  1. Payment of outstanding purchase consideration to the Promoter for the spin-off of the API business from the Promoter into the Company pursuant to the Business Purchase Agreement (Rs 800 crore)
  2. Funding capital expenditure requirements; (Rs 152.76 crore)
  3. General corporate purposes

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Business Profile

GLS is a leading developer and manufacturer of high value, non-commoditized APIs and its portfolio comprise 120 products (10 products in laboratory development; 4 products in laboratory validation, and 106 products being commercialized) ranging across various therapy areas like cardiovascular, CNS, diabetes, gastro-intestinal disorders anti-infectives, and others.

GLS has a strong market share in selected specialized APIs such as Telmisartan (anti-hypertensive), Atovaquone (anti-parasitic), Perindopril (anti-hypertensive), Teneligliptin (diabetes), Zonisamide (CNS), and Adapalene (dermatology). The company has also initiated to provide contract development and manufacturing operation services to a range of multinational and specialty pharmaceutical companies. GLS is a research and development-driven API manufacturer focused on undertaking dedicated R&D in existing products and in areas where there is growth potential in the future.

The APIs are sold in India and exported to multiple countries in Europe, North America, Latin America, Japan, and the rest of the world (“ROW”).

GLS currently operates four multi-purpose manufacturing facilities which are situated on leasehold properties located at Ankleshwar and Dahej in the state of Gujarat, India, and Mohol and Kurkumbh in the state of Maharashtra with an aggregate annual total installed capacity of 725.8 KL as of December 31, 2020.

Expansion plans

The Issuer plans to increase the API manufacturing capabilities by enhancing the existing production capacities at Ankleshwar facility by FY22 and Dahej facility by FY22-FY23 to an aggregate annual total installed capacity of 200 KL. This additional production capacity is expected to expand the generic API production and also grow the oncology product pipeline. The Issuer aims to develop a new manufacturing facility in India for the manufacture of generic APIs from FY22 which is expected to become operational in the fourth quarter of FY23. The new facility would provide a platform for the growth of CDMO business and also add capacity for the generic API business.

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About CA Priyanka Choudhary Jain 122 Articles
Chartered Accountant & an experienced credit analyst. She has worked with CRISIL as a Senior Credit Analyst on rating assignments including business & financial analysis in Corporates as well as the Public Finance Sector. Please mail your queries, feedback, and any suggestions to her on info.financepost@gmail.com

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