Glenmark Life Sciences Prices IPO At Rs 695-720 Apiece
The three-day IPO will open on July 27.
Glenmark Life Sciences Ltd., a bulk drug and contract manufacturer backed by Glenmark Pharmaceuticals Ltd., will sell shares at Rs 695-720 apiece in its initial public offer opening next week.
The manufacturer of active pharmaceutical ingredients aims to raise up to Rs 1,513.60 crore through the issue. The three-day IPO, opening on July 27, comprises a fresh issue worth Rs 1,060 crore and an offer-for-sale of 63 lakh shares by Glenmark Pharma, according to its red herring prospectus.
The company is valued at Rs 8,822 crore at the upper end of the price band. The promoters will own 83% after the offer, while the rest will be held by the public. The IPO accounts for 17.2% of the post-issue equity capital.
Glenmark Life Sciences plans to use Rs 800 crore from the proceeds to pay the parent for the acquisition of the API business in 2018. The business was sold at a slump sale value of Rs 1,100 crore. Besides, the company will use Rs 155 crore for brownfield capital investment at its Dahej facility. It’s also planning to set up a greenfield facility in Solapur, Maharashtra, which will double its capacity by 2024.
Glenmark Life Sciences has four manufacturing facilities located in Gujarat and Maharashtra.
Watch the interview with Glenmark Life Sciences' MD & CEO Yasir Rawjee: