Glenmark Life Sciences Files Draft IPO Papers With SEBI
Glenmark Pharmaceuticals Ltd.’s wholly owned subsidiary has taken the first step to go public.
Glenmark Life Sciences Ltd., a manufacturer and developer of active pharmaceutical ingredients or raw materials for drugs, has filed a draft red herring prospectus with the Securities and Exchange Board of India for an initial public offering.
The maiden offer will comprise a fresh issue worth up to Rs 1,160 crore and an offer-for-sale of 73.05 lakh equity shares by its listed parent at the face value of Rs 2 apiece, according to the DHRP. This IPO will be subject to market conditions, receipt of applicable approvals and other considerations.
The Pune-based company, having its registered office in Solapur, operates four manufacturing facilities in India and has a portfolio of 120 molecules globally. It sold APIs in India and exported them to Europe, North America, Latin America, Japan and the rest of the world. Exports contributed to 42.36% of its revenue as on Dec. 31, 2020. The company had filed 399 drug master files and certificates of suitability to the monographs of the European Pharmacopoeia across various major markets as on April 7, 2021.
Glenmark Life Sciences acquired the API division of Glenmark Pharma in July 2018 and this division contributed to 91.72% of their total revenue for the nine months ended December 2020. Its profit before tax has been consistently rising over the last three fiscals, with the pre-tax income for the nine months ended December 2020 being at Rs 330.32 crore.
Total liabilities for April-December 2020 stood at Rs 1.31 lakh crore, while total assets were at Rs 1.96 lakh crore. Total income grew at an annualised rate of 8.56% between FY18 and FY20 to Rs 1,418 crore as on Dec. 31, 2020.
Kotak Mahindra Capital, BofA Securities, Goldman Sachs, Kotak Mahindra Capital, DAM Capital, BoB Caps and SBI Capital Markets are the book running lead managers of this IPO.