Glenmark Life Sciences IPO: TOP 12 things to know

The company will be coming up with initial public offerings to raise funds through fresh issue of equity shares aggregating up to Rs 1,060 crore.

Glenmark Life Sciences IPO is opening on July 27, 2021 and will end on 29 July. Source: Reuters

Glenmark Life Sciences IPO is opening on July 27, 2021 and will end on 29 July. Glenmark Life is likely to finalise the IPO share allotment on August 4, and the funds will be refunded on August 5, 2021. Eligible investors will get their shares in their demat accounts around August 6, and shares will debut on the bourses on August 9. Its equity shares are proposed to be listed on BSE and NSE.

Investors who are planning to invest in the Glenmark Life Sciences IPO can consider these key points before the public listing. Here are 12 key things to know before subscribing public issue.

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1.Glenmark Life Sciences is one of the developers and manufacturers 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.

2. The company also manufactures and sells APIs for gastro-intestinal disorders, anti-infectives and other therapeutic areas. We are also increasingly providing contract development and manufacturing operations (CDMO) services to a range of multinational pharmaceutical and specialty pharmaceutical companies. It is a research and development (R&D)-driven API manufacturer, focused on undertaking dedicated R&D in our existing products and in areas where we believe there is growth potential in the future.

3. The company currently operate four multi-purpose manufacturing facilities which are situated on leasehold properties located at Ankleshwar and Dahej in the state of Gujarat, India, and Mohol and Kurkumbh in the state of Maharashtra, India with an aggregate annual total installed capacity of 726.6 KL as of March 31, 2021.

4. For the financial years 2021, 2020 and 2019, its total expenditure for R&D activities was Rs 40.52 crore, Rs 40.03 crore and Rs 37.57 crore, or 2.15 per cent, 2.60 per cent and 2.67 per cent of its total revenue from operations, respectively.

5. As of May 31, 2021, the company had filed 403 Drug Master Files (DMFs) and Certificates of suitability to the monographs of the European Pharmacopoeia (CEPs) across various major markets (the United States, Europe, Japan, Russia, Brazil, South Korea, Taiwan, Canada, China and Australia). The company owned or co-owned 39 granted patents and had 41 pending patent applications in several countries and six pending provisional applications in India.

6. The company sales customer products in both regulated markets and emerging markets. For the financial years 2021, 2020 and 2019, its revenue from regulated market products was Rs 1,237.41 crore, Rs 1,096.62 crore and Rs 968.51 crore, or 65.64 per cent, 71.33 per cent and 68.93 per cent of its total revenue from operations, respectively.

7. As on March 2021, the company has portfolio of 120 molecules globally and sells its APIs in India and exported APIs to multiple countries in Europe, North America, Latin America, Japan and the rest of the world (ROW). As of March 31, 2021, 16 of the 20 largest generic companies globally were its customers.

8. The total market size in terms of sales for our portfolio of 120 molecules globally was estimated to be around US$142 billion in 2020 and is expected to grow by about 6.8 per cent over the next five years to reach to about US$211 billion by 2026. The market size in terms of volume for our 120 molecules was estimated to be at 9,959 tonnes in 2020 and is expected to grow at a rate of 6 per cent over the next five years to reach to about 12,079 tonnes by 2026.

9. The chronic therapeutic areas covered by its portfolio of 120 molecules is expected to become 91 per cent by 2026 from 84 per cent currently. The future growth of its 120 molecules products is expected to remain stable driven by the increasing prevalence of non-communicable diseases (including heart disease, stroke, cancer, diabetes and chronic lung disease), growing demand from the regulated markets for drugs indicated for hypertension, diabetes and cancer, and an aging population.

10. The company plans to increase its API manufacturing capabilities by enhancing the existing production capacities at Ankleshwar facility during the financial year 2022 and Dahej facility during the financial years 2022 and 2023 by an aggregate annual total installed capacity of 200 KL.

11. The company will be coming up with initial public offerings to raise funds through fresh issue of equity shares aggregating up to Rs 1,060 crore and Offer for Sale up to 63,00,000 equity shares by Glenmark Pharmaceuticals. The face value of equity shares is Rs 2 each.

12. Kotak Mahindra Capital Company, BofA Securities India, and Goldman Sachs (India) Securities Private are the global co-ordinators and book running lead managers to the issue. DAM Capital Advisors (Formerly known as IDFC Securities), BOB Capital Markets and SBI Capital Markets are the book running lead managers to the issue.

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