Glenmark Life Sciences IPO subscribed 44.17 times on final day – Check Anil Singhvi's strategy for this IPO

The three-day initial public offer of Glenmark Life Sciences was oversubscribed by 44.17 times on the final day of subscription on Thursday. The issue had opened on July 27, 2021.

Glenmark Pharma’s subsidiary Glenmark Life Sciences aims to raise Rs 1,513.6 crore, of which Rs 1060 crore through fresh issue and an offer for sale of up to 63 lakh equity shares, with a price range at Rs 695-720 per share.

The IPO received bids for 66,33,24,160 shares against 1,50,18,279 shares offered, according to the data available on exchanges.

Wherein, Qualified Institutional Buyers(QIBs) portion was subscribed 36.97 times, non-institutional investors a queued most with 122.54 times and retail individual investors (RIIs) showed least interest by 14.63 times.

Ahead of its IPO launch, Glenmark Life Sciences on Monday raised Rs 454 crore from anchor investors.

The net proceeds from the fresh issue will be used towards the payment of outstanding purchase consideration to the promoter for the spin-off of the API business and funding the capital expenditure requirements.

Glenmark Life Sciences is a leading developer and manufacturer of select high-value, non-commoditised active pharmaceutical ingredients (APIs) in chronic therapeutic areas, including cardiovascular disease, central nervous system disease, pain management, and diabetes.

Goldman Sachs (India), SBI Capital, Kotak Mahindra Capital, BofA Securities India, DAM Capital Advisors, and BoB Capital Markets are the lead managers to the issue. The equity shares of the company will be listed on BSE and NSE.

In a review, Zee Business Managing Editor and market guru Anil Singhvi had said that the Glenmark Life IPO is neither cheap nor costly in terms of valuations, however, the issue price could have been lower than Rs 720 per share. 

He mentions, the listing of the company will be satisfactory, neither bumper nor less than the issue price and suggests investors to apply for this stock with a long-term perspective for good returns.