Glenmark Life Sciences IPO To Open Tomorrow. Should You Subscribe?

Glenmark Life Sciences' IPO will consist of a fresh issue of Rs 1,060 crore and an offer for sale of up to 6.30 million shares by Glenmark Pharmaceuticals

Glenmark Life Sciences IPO To Open Tomorrow. Should You Subscribe?

Glenmark Life Sciences is API (active pharmaceutical ingredients) arm of Glenmark Pharmaceuticals

Glenmark Life Sciences' initial public offering (IPO) will open tomorrow i.e. July 27, 2021. The IPO, which will remain open for three days until July 29, will consist of a fresh issue of Rs 1,060 crore and an offer for sale of up to 6.30 million shares by Glenmark Pharmaceuticals, which currently holds a 100 per cent stake in Glenmark Life Sciences. The shares of the a wholly-owned subsidiary of Glenmark Pharmaceuticals are likely to be listed on the BSE and NSE on August 6.

Glenmark Life Sciences is the API (active pharmaceutical ingredients) arm of Glenmark Pharmaceuticals. It has more than 120 products in its portfolio and exports APIs to multiple countries in Europe, North America and Latin America.

Kotak Mahindra Capital, BofA Securities, Goldman Sachs, DAM Capital, SBI Capital and BoB Capital are the investment bankers to the public issue, whereas KFintech is the registrar to the issue.

Should You subscribe to the Glenmark Life Sciences IPO?

"At the upper end of the IPO price band, Glenmark Life Sciences is offered at 25.09x its FY21 earnings, with a market cap of Rs 88,219 million," brokerage firm Anand Rathi said in a note to its investors.

"Given the company's leadership in select high value non-commercialized APIs in chronic therapeutic areas, cost leadership, strong management, strong balance sheet, growing business, high RoNW of 46.71 per cent in the fiscal ended March 31, 2021 and reasonable valuations, we give this IPO a "Subscribe" rating," Anand Rathi added.