Glenmark Life Sciences to launch IPO in Julywritten by Bella Palmer
The company intends to use the proceeds from the IPO for capital expenditure requirements which includes the expansion of capacity at the Dahej manufacturing site
Glenmark Life Sciences, the developer and manufacturer of commoditized active pharmaceutical ingredients in chronic therapeutic areas, will launch its initial public offering (IPO) for subscription in the coming week.
It has priced its IPO between Rs 695 and Rs 720 per equity share. The company has reduced its offer size by nearly Rs 150 crore.
When filing the draft red herring prospectus (DRHP), the company was planning to raise Rs 1,160 crore as fresh capital, and promoters were planning to sell 7.3 million shares.
The IPO now consists of a fresh issue of Rs 1,060 crore and an offer for sale of 6.3 million shares worth Rs 453.60 crore.
Kotak Mahindra Capital Company Limited, BofA Securities India Limited and Goldman Sachs (India) Securities Private Limited are the Global Co-ordinators and Book Running Lead Managers to the Offer. DAM Capital Advisors Limited, BOB Capital Markets Limited and SBI Capital Markets Limited are the Book Running Lead Managers to the Offer.
The IP0 will begin on July 27 and conclude on July 29. The anchor investor bid will start on July 26, and it may get listed on exchanges on August 6. The subscription for the IPO will start on July 27 and close on July 29. It has set a price band of Rs695 to Rs720.
At the upper end of the price band, the company could raise to Rs 1,513.60 crore. The offer for sale is made by the company's promoter, Glenmark Pharmaceuticals.
The company intends to use the proceeds from the IPO for capital expenditure requirements which includes the expansion of capacity at the Dahej (Gujarat) manufacturing site to meet the anticipated future demand of its generic active pharmaceutical ingredients (API) products.
Active pharmaceutical ingredient (API) means the active ingredient, which is contained in a medicine.
CEO of Glenmark Life Sciences, Yasir Rajwee said: Except for one antimalarial product segment, our demand outlook I mean demand that we are getting from customers from the last five quarters has been extremely solid. See no one is saying that we are buying less from China and more from India, but it is very clear to see that kind of demand. So I believe China Plus One is a real thing.
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