Glenmark Life Science files IPO papers with SEBI

 Glenmark Life Sciences Ltd filed a draft red herring prospectus with the Securities and Exchange Board of India to raise funds through an initial public offering. The IPO will have a fresh issue of ₹1,160 crore and an offer for sale of up to 7.31 million shares by parent company Glenmark Pharmaceuticals Ltd.

Glenmark Pharmaceuticals owns 100% stake in Glenmark Life Sciences.

Kotak Mahindra Capital, Goldman Sachs, DAM Capital, BoB Caps, BoFa Securities, and SBI Capital Markets are appointed as the lead managers to the issue.

Proceeds from the fresh issue worth ₹900 crore will be utilized for the repayment of outstanding purchase consideration to the promoter of the active pharmaceutical ingredients (API) business. ₹152.76 crore will be utilized for financing capital expenditure requirements.

The company depends on API business and for the fiscal 2020 and 2019, its API operations provided 84.16% and 89.87% of its total revenue from operations respectively.

For the fiscal year 2020, the cumulative income of the company was at ₹1549.30 crore versus ₹886.87 crore a year before. Net profit for the period stood at ₹313.10 crore against ₹195.59 crore last year. As of December 2020, the net debt of the company stood at ₹947.44 crore.

Glenmark Life Science is a major developer and manufacturer of select high-value, non-commoditized active pharmaceutical ingredients in chronic therapeutic areas, including cardiovascular disease, central nervous system disease, pain management, and diabetes.

As of December 2020, the company had a portfolio of 120 molecules globally and sold APIs in India and shipped to many countries in Europe, North America, Latin America, Japan, and the rest of the world. As of 7 April, the company had filed 399 drug master files (DMFs) and certificates of suitability to the monographs of the European Pharmacopoeia across various major markets.

The pharmaceutical industry is witnessing a surge in demand since the COVID pandemic. The IPO can put Glenmark Life Sciences ahead of its competitors.

Shishir Gupta, Founder and CEO, StartupLanes

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